Japan's Crypto Regulation 2026: Latest Updates and Future Outlook

Wed, 08 Jul 2026 10:00:00 +0900

Japan’s crypto regulation is undergoing a major transformation in 2026. The amended Payment Services Act took full effect in July, establishing a legal framework for stablecoins. This article summarizes the latest regulatory developments and future outlook.

Full Enforcement of the Amended Payment Services Act

The revised Payment Services Act, fully enforced in July 2026, tightens registration requirements for crypto asset exchange service providers and introduces a new registration system for stablecoin issuers. Stablecoins issued in Japan must now be fully backed by fiat currency such as the yen, with regular audits and trust-custody arrangements mandated for issuers.

Crypto Law Reform: Latest Trends and Lobbying for Tax Reforms

Thu, 26 Mar 2026 15:15:00 +0900

Japan’s progressive tax rate on crypto profits (up to 55%) has faced heavy criticism for driving Web3 entrepreneurs and capital overseas. In response, advocacy organizations are actively lobbying to lower tax rates. We examine these policy developments.

Core Tax Policy Proposals (JCBA / JVCEA Initiatives)

Industry organizations submit tax reform proposals to the Liberal Democratic Party (LDP) annually:

Unified 20% Separate Taxation: Aligning crypto tax codes directly with standard stock market and FX capital gains.
Three-Year Loss Carryforward: Allowing traders to offset current losses against future capital gains.
Tax-Free Crypto-to-Crypto Swaps: Tax liabilities would trigger only upon final conversion back to fiat currencies (JPY).

Current Status & Outlook

While the LDP’s Web3 Project Team successfully eased corporate token holding tax rules, reforms for retail investors are still under review by the Tax Commission. Progress is heavily watched as a catalyst for Japan’s Web3 market.

法改正 on Mainnet.jp

Japan's Crypto Regulation 2026: Latest Updates and Future Outlook

Full Enforcement of the Amended Payment Services Act

Crypto Law Reform: Latest Trends and Lobbying for Tax Reforms

Core Tax Policy Proposals (JCBA / JVCEA Initiatives)

Current Status & Outlook