Shiba Inu’s Recognition in Japan
In a landmark move, Shiba Inu (SHIB) has been officially recognized on Japan’s established “Green List” of pre-approved cryptocurrencies. This critical classification places SHIB in good company with giants like Bitcoin and Ethereum and signals growing confidence in the asset.
Impact of Tax Reforms
The recognition not only elevates SHIB’s status in the market but also positions it favorably for upcoming tax reforms proposed by the Financial Services Agency (FSA).
Currently, Japanese residents who engage in crypto trading must declare their profits as miscellaneous income, facing a hefty tax rate of 55% on earnings, particularly for those in the highest tax bracket. However, plans are underway to revise this taxation framework significantly, potentially reducing the taxation of capital gains to a more favorable flat rate of 20%.
This proposed change could revolutionize how cryptocurrency is viewed in Japan, aligning it more closely with treatment in other countries where crypto gains are taxed as capital income rather than miscellaneous earnings.
Future Implementation
The FSA’s proposal aims to see these changes implemented following government approval during the budget discussions anticipated in early 2026. Coverage from Asahi Shimbun indicates that this will be a key focus for the regulatory body and will affect all 105 cryptocurrencies included on the Green List, including SHIB.
For example, a Tokyo trader earning approximately 5 million yen (or about $33,000) in profit from SHIB would experience a sharp decline in tax liabilities, from roughly 2.75 million yen ($18,150) to around 1 million yen ($6,600) under the new 20% regime.
Compliance and Government Support
The approval of SHIB on the Green List also signifies its compliance with stringent criteria established by the Japan Virtual and Crypto assets Exchange Association. Factors such as issuer reputation, project transparency, and technology soundness influenced its inclusion alongside other leading digital currencies.
Japanese Finance Minister Katsunobu Kato has confirmed that the final touches are being put on the proposal, which emphasizes the government’s intention to bolster the cryptocurrency sector as part of its broader economic strategy. Prime Minister Shigeru Ishiba has echoed the sentiment, stressing the necessity of fostering cryptocurrency growth to address Japan’s economic challenges.
If finalized, the reforms could go into effect on April 1, 2026, paving the way for a more attractive investment landscape for crypto assets like SHIB.
