The Japanese government plans to introduce a new tax regime for cryptocurrency assets starting January 2028. This "separate declaration taxation" system aims to align crypto asset taxation with that of traditional financial products, such as stocks, which are taxed at a flat rate of 20%. Currently, crypto trading profits are classified as "miscellaneous income" and taxed at rates up to 55% when combined with other income. Although there was an expectation for the new tax system to be implemented in 2027 alongside the Financial Instruments and Exchange Act, political sources indicate that more time is needed for its enactment.