Financial Services Agency Requests Simplification of Stablecoin Taxation｜Facilitating Payments Over 1 Million Yen

On August 31, the Financial Services Agency (FSA) requested the exemption of tax document submission obligations related to trust-type stablecoins in its tax reform proposal for the fiscal year 2027.

Reducing Practical Burdens

In the tax reform proposal published by the FSA, "promoting financial innovation" is highlighted as a key policy pillar. One of the main items clearly included is the simplification of tax procedures concerning trust-type stablecoins.

Under current Japanese law, whenever the beneficiary of a trust changes, the trustee, such as a trust bank, is required to submit documents to the tax office. Specifically, submissions of "beneficiary-specific statements" under the Inheritance Tax Act and "trust calculation statements" under the Income Tax Act are necessary.

However, stablecoins are linked to the value of legal tender and are frequently traded among a large number of users as a means of everyday payment.

Therefore, submitting documents for each transaction poses a significant practical burden, and it is also challenging for trustees to identify current holders and track changes individually.

Since merely holding stablecoins does not generate income, there is a substantial discrepancy between the current tax document system and the nature of stablecoins.

Promotion of High-Value Payments and Future Prospects

This request aims to address such practical issues and support the spread of new payment methods utilizing cryptocurrency technology.

If the procedural burden is significantly reduced, stablecoins can be smoothly utilized for high-value payments exceeding 1 million yen, such as purchasing cars or houses.

The FSA is actively promoting the modernization of the financial system and tax system toward realizing a "nation of asset management."

Additionally, the request includes measures not only for domestically issued stablecoins but also for foreign-issued trust-type stablecoins that meet certain conditions.

The aim is to establish a consistent tax treatment for both domestic and foreign cryptocurrencies.

However, this announcement remains an official request from the FSA. For the system to actually change, discussions in future government and ruling party tax investigation meetings and necessary legal amendments will be required.