Survey: Complexity of the tax system is the main reason Japanese investors are selling cryptocurrencies

ChainCatcher news, according to BeInCrypto, a nationwide survey in Japan shows that among people who previously held cryptocurrencies, 22.2% said the complexity of the tax system was the main reason for their exit, while 19.4% cited price volatility as the primary reason. Currently, investors holding digital assets generally believe that volatility (61.4%) and tax complexity (60%) are the two biggest challenges they face.

The report states that in Japan, cryptocurrency gains are classified as "miscellaneous income," and after paying local taxes, the tax rate can be as high as 55%. Investors must track every transaction, calculate profits and losses denominated in yen, and declare them annually. For many, this tedious administrative work outweighs investment returns—despite 62.7% of investors stating that long-term wealth accumulation is their main reason for investing, while only 15.1% prioritize short-term speculation.

Another report states that the Financial Services Agency of Japan plans to reclassify 105 types of cryptocurrencies as financial products and reduce the maximum tax rate on cryptocurrency gains from up to 55% to 20%, aligning with stock market tax policies. This reform plan is expected to be submitted to the National Diet for legislative review in 2026.