Japan is reportedly planning to reduce the tax rate on Ethereum from a potential high of 55% to 20% by the second quarter of 2026. This move, although not officially confirmed by government statements, is expected to significantly impact the local cryptocurrency market by encouraging greater adoption and investment. The proposed tax reduction aligns with Japan's broader regulatory efforts to classify 105 cryptocurrencies as financial products, potentially harmonizing its regulations with international standards. Market participants anticipate that the lower tax rate will foster growth in cryptocurrency investments, making Japan a more attractive environment for crypto traders and institutional investors.