Japan's reportedly shaking up its crypto tax game. According to Nikkei, the country's planning a flat 20% rate on all digital asset profits—down from the brutal 55% some traders face now under the current progressive system.

The twist? They're treating crypto like stocks and investment trusts. Same rules, same rate. Makes sense if you think about it—why should one asset class get hammered while another gets preferential treatment?

Word is this'll land in the 2026 tax outline. If it goes through, Japan could become way more attractive for crypto investors. Lower taxes usually mean more capital flowing in. We've seen this pattern play out in other jurisdictions.

Still early days though. Tax proposals and actual implementation are two different beasts. But the direction's clear—Japan's signaling it wants a bigger piece of the crypto pie without scaring everyone away with confiscatory rates.