Reports indicate that the Japanese government and ruling party are entering final adjustments to impose a uniform 20% separate tax on cryptocurrency income. This legislative move would align crypto taxation with that of stocks and investment trusts, effectively replacing the current miscellaneous income classification, which subjects investors to progressive rates reaching up to 55%. This shift is seen as a significant step toward treating cryptocurrency as a legitimate financial product rather than a speculative asset. The reform addresses long-standing demands from domestic investors and industry advocates who have argued that the current tax regime stifles market growth and innovation. By creating a comparable investment environment to traditional assets, the government aims to facilitate wealth formation among the public and potentially stem the flow of talent and capital overseas. [Update 1] New reports confirm that the proposal is specifically targeting a revision to treat crypto gains similarly to traditional financial products, with the 20% rate being the central pillar of the reform discussions.