Japan Cuts Crypto Tax to 20% and Clears Path for Spot Bitcoin ETFs

Japan is overhauling crypto regulation with a flat 20% tax rate and institutional ETF gateway as of 20 May. The story began 17 May when SBI and Rakuten launched in-house Bitcoin and Ethereum trusts targeting ¥5 trillion AUM. On 18 May the government approved a bill reclassifying crypto under the Financial Instruments and Exchange Act effective fiscal 2027 and proposed slashing the top tax rate from 55% to 20%. SBI’s 19 May plan to list ETFs via its Franklin Templeton JV by 2028 could tap $14.8 trillion in household assets, mirroring $6.4 billion U.S. inflows and positioning Japan as a major regulated yen-denominated source of Bitcoin demand.