Japan’s ruling coalition proposed a 2026 tax reform that would treat certain crypto assets closer to traditional financial products. The plan would apply separate taxation to gains from spot crypto trading, derivatives and crypto-related ETFs, introduce up to three-year loss carryforwards for qualifying crypto transactions, and limit the new regime to “specified crypto assets” handled by registered operators. Staking and lending rewards are not explicitly covered, NFTs are not addressed, and the proposal preserves strict separation of income categories so crypto losses likely could not be offset against equity or other asset-class gains.

Proposal reclassifies some crypto closer to financial products and introduces separate taxation and up to three-year loss carryforwards for qualifying transactions (potentially reducing tax friction). New treatment is limited to “specified crypto assets” handled by registered operators (restricts scope). Staking/lending and NFTs are not covered, and strict separation of income categories would likely prevent offsetting crypto losses against other asset-class gains (potentially negative for taxpayers).