Japan's recent decision to classify Bitcoin as a financial product is expected to drive increased buying activity, according to crypto analyst Willy Woo. The reclassification means Bitcoin gains will be taxed at a lower rate of 20%, compared to the previous marginal income tax rate of up to 55% for high earners. This change reduces the tax advantage of platforms like Metaplanet over self-custodied Bitcoin. Additionally, around 110 other cryptocurrencies are affected, with staking gains still subject to the higher marginal tax rate.
Japan's Bitcoin Reclassification to Boost Purchases, Says Analyst
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