March 9, 2026

LDP election win signals continued support for crypto tax reforms in Japan

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Japanese Prime Minister Sanae Takaichi is unlikely to obstruct efforts to reform Japan’s cryptocurrency tax laws following the Liberal Democratic Party’s recent supermajority victory in a snap election. Despite differing in foreign and fiscal policy from her predecessors, Takaichi’s leadership is seen as conducive to continuing the deregulation momentum initiated by former Prime Ministers Kishida and Ishiba, particularly in fostering the blockchain industry. Plans are underway to implement a flat 20% capital gains tax on crypto profits by 2028, aligning with the broader government strategy to reclassify cryptocurrencies as financial investment products, and these ongoing reforms are viewed positively by industry insiders.

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