Japan’s market regulator is preparing to propose a revision to the nation’s tax code, potentially opening the door for domestic cryptocurrency exchange-traded funds, according to a report dated Friday.

Major Crypto Tax Reform On The Cards?

The Financial Services Agency is planning to request a review of the tax treatment of cryptocurrencies, or virtual currency, for the 2026 fiscal year, Nikkei reported.

The proposal, expected by the end of August, includes shifting cryptocurrency gains to a separate tax category with a flat 20% tax rate, similar to regular capital gains taxes. This is a major shift from the current system,

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