Gushiken Yona
The designation from Japan’s self-regulatory body makes SHIB a prime candidate for a proposed tax overhaul that would slash the rate on crypto gains from 55% to 20%.
Key Points
- The designation from Japan’s self-regulatory body makes SHIB a prime candidate for a proposed tax overhaul that would slash the rate on crypto gains from 55% to 20%
- Shiba Inu Green List Approval Aligns Japan Tax With Global Standards
- Japanese residents currently must declare crypto-related profits as miscellaneous income on annual tax returns
Shiba Inu (SHIB) has secured a spot on Japan’s “Green List” of pre-approved crypto assets, a significant development that signals its market acceptance and positions it to benefit from a proposed government plan to slash crypto taxes. The inclusion places SHIB alongside Bitcoin and Ethereum in a trusted regulatory category, making it a prime candidate for a plan by Japan’s Financial Services Agency (FSA) to cut the tax on crypto gains from a high of 55% to a flat 20%.
Shiba Inu Green List Approval Aligns Japan Tax With Global Standards
Japanese residents currently must declare crypto-related profits as miscellaneous income on annual tax returns. Crypto traders in the country’s highest tax band pay 55% tax on their earnings. In many other nations, crypto gains are taxed separately as capital gains.
The FSA’s move would change that, meaning profits derived from 105 approved coins including SHIB will instead be subject to a flat 20% rate. The proposal appeared in coverage by Asahi Shimbun, which cited FSA sources stating the agency would seek government approval ahead of fiscal year 2026.
The Japan Virtual and Crypto assets Exchange Association confirmed the green list status of Shiba Inu on November 12, 2025. The token is listed across eight member exchanges, well above the three-exchange minimum required for green list inclusion.
The FSA has not yet made an official comment on the report. Government approval would be required for implementation, expected during budget proceedings in early 2026.
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FSA Green List Vetting Applied Rigorous Standards to SHIB
The FSA used a wide range of selection categories to determine which coins made its approved green list. Selection criteria included project transparency, the financial stability and reputation of coin issuers, the soundness of their underlying technologies, and the perceived risk of price fluctuations.
The green list placement of Shiba Inu signals the token satisfied these stringent standards alongside Bitcoin, Ethereum, and 27 other approved assets. The proposed capital gains framework would eliminate Japan’s treatment of crypto as miscellaneous income, which subjected traders to progressive tax structures used for lottery winnings and irregular earnings.
Japan’s Proposed 20% Capital Gains Rate Matches International Norms
A Tokyo-based trader in Japan’s highest tax band earning 5 million yen ($33,000) in SHIB profits currently pays approximately 2.75 million yen ($18,150) in taxes under miscellaneous income classification. Under the proposed 20% capital gains structure, that obligation would drop to roughly 1 million yen ($6,600).
The 35-percentage-point reduction would place Japan’s crypto tax policy for green list assets in line with competitive developed-nation jurisdictions. Germany offers tax-free treatment for crypto holdings exceeding one year, while the United States applies capital gains rates ranging from 0% to 20% depending on income and hold period.
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Finance Minister Katsunobu Kato confirmed regulators are finalizing the proposal. Prime Minister Shigeru Ishiba called cryptocurrency development “extremely important” for Japan’s economic challenges.
The FSA expects to present reform requests during budget proceedings in the first weeks of 2026. If approved, changes would take effect April 1, 2026, benefiting all green list cryptoassets including SHIB.
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YONA GUSHIKEN
Yona brings a decade of experience covering gaming, tech, and blockchain news. As one of the few women in crypto journalism, her mission is to demystify complex technical subjects for a wider audience. Her work blends professional insight with engaging narratives, aiming to educate and entertain.
