According to Odaily, the Japan Crypto Asset Business Association (JCBA) and the Japan Virtual and Crypto Assets Exchange Association (JVCEA) have jointly submitted a request to the Japanese government for tax reforms related to crypto assets for the year 2025. Under the current tax system, income generated from crypto asset transactions is generally classified as miscellaneous income, which is subject to comprehensive taxation. The income tax on miscellaneous income ranges from 5% to 45%, and when combined with residential tax, the rate can reach up to 55%.

The request highlights that the existing tax system 'prevents citizens from acquiring and using virtual currencies,' and identifies the current tax regime as the biggest obstacle to the government's promotion of Web3 development. Additionally, the proposal suggests the introduction of a separate self-assessment tax and loss carryforward deductions. Earlier this month, on the 19th, the Japan Blockchain Association (JBA) also submitted a request to the government for tax reforms concerning virtual currencies for 2025.