Japan's parliament has passed legislation allowing citizens to pay national and local taxes in Bitcoin starting January 2027, making it the first G7 nation to grant cryptocurrency legal tender status for government payments.
Key Details
- Tax payments accepted in BTC starting January 2027
- Real-time conversion at point of payment
- No capital gains tax triggered on tax payments
- Government will hold BTC reserves (not immediately convert)
Prime Minister Ishiba framed the move as positioning Japan as a global crypto hub. The announcement triggered a 5% BTC rally and a surge in Japanese exchange registrations.
