Survey: Complexity of Tax System Is the Main Reason Japanese Investors Are Selling Off Cryptocurrency

According to ChainCatcher, citing BeInCrypto, a nationwide survey in Japan shows that among people who previously held cryptocurrencies, 22.2% said the complexity of the tax system was the main reason they exited, while 19.4% pointed to price volatility as the primary factor. Current digital asset investors generally believe that volatility (61.4%) and tax complexity (60%) are the two major challenges they face.

The report states that in Japan, crypto earnings are classified as “miscellaneous income,” and after local taxes, the rate can be as high as 55%. Investors must track every transaction, calculate profits and losses in yen, and report annually. For many, this cumbersome administrative work outweighs the investment returns—even though 62.7% of investors say long-term wealth accumulation is their main reason for investing, while only 15.1% prioritize short-term speculation.