Japan has announced a tax reform plan set for 2026, aiming to reduce the capital gains tax on cryptocurrencies from up to 55% to a flat 20%. Despite rumors, there will be no specific tax cut for Ethereum. The reform will reclassify cryptocurrencies, including Ethereum, as "financial products" under the Financial Instruments and Exchange Act, affecting over 105 crypto assets on registered exchanges. The Financial Services Agency (FSA) will oversee the reclassification, aligning crypto taxation with stock regulations. This move is expected to unify tax treatment and potentially enhance market stability. Additionally, a loss carry-forward provision for three years is planned, which could lower taxable income from crypto losses, making the investment environment more accessible.