Japan's 2026 fiscal year tax reform outline suggests implementing separate taxation for virtual currencies, similar to stocks and investment trusts. This proposal includes categorizing virtual currency trading, derivatives, and ETFs as distinct taxable items, with the ability to carry forward losses for up to three years. While the reform aims to streamline tax processes for digital assets, it leaves NFTs and staking rewards unspecified. Market reactions, potentially reflected in the fear and greed index, and factors like trading volume and cross-border transfers could influence future tax obligations.