"Japan's new tax reform could be the catalyst that pushes XRP ( ) toward its next rally. By slashing crypto taxes from 55% to 20% and reclassifying digital assets under the same framework as stocks, Tokyo has made holding and trading XRP dramatically more attractive to institutions, exchanges, and corporate treasuries. But the gap between catalyst and breakout is real. XRP trades near $1.40, down 60% from its July 2025 high of $3.65-reaching $4 requires a 185% rally."
"Japan's government cut cryptocurrency taxes from up to 55% to a flat 20% , aligning crypto with stocks under the Financial Instruments and Exchange Act. Previously, crypto gains were taxed as miscellaneous income at rates that climbed with earnings. Investors also couldn't offset losses against gains, which made the tax burden even harsher for active traders. The tax reform, expected to take effect by late 2026 or early 2027, changes three things that matter for specific digital assets, including XRP:"
Japan reduced cryptocurrency taxes from as high as 55% to a flat 20% and aligned digital assets with stocks under the Financial Instruments and Exchange Act. The reform introduces a three-year loss carryforward and requires exchange-provided reporting, simplifying tax filing and allowing investors to offset future gains with past losses. The changes are expected to take effect by late 2026 or early 2027 and remove punitive tax treatment that kept banks, asset managers, and pension funds on the sidelines. XRP trades near $1.40, down 60% from its July 2025 high of $3.65, and reaching $4 requires roughly a 185% rally. The reform eliminates a major institutional obstacle in Japan, XRP's strongest national market, but broader demand and market momentum remain necessary for a sustained breakout.
Read at 24/7 Wall St.
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