🇯🇵 Japan Makes Major Changes to Crypto Tax Rules: BTC/ETH/XRP All Unified Under a 20% Tax Rate, With Three-Year Loss Carryforwards
A big policy shift is underway. Japan has reclassified crypto assets as financial products. The tax rate has been cut dramatically—from the previous progressive system with a top rate of up to 55% down to a fixed 20% rate—and it has also introduced a three-year loss carryforward. In other words, the positions that are already down from this cycle can be used to offset taxes payable over the next three years, significantly easing the tax burden for long-term holdings.
Let’s look at Binance’s real-time market data: XRP
A big policy shift is underway. Japan has reclassified crypto assets as financial products. The tax rate has been cut dramatically—from the previous progressive system with a top rate of up to 55% down to a fixed 20% rate—and it has also introduced a three-year loss carryforward. In other words, the positions that are already down from this cycle can be used to offset taxes payable over the next three years, significantly easing the tax burden for long-term holdings.
Let’s look at Binance’s real-time market data: XRP