Japanese netizen's father passed away, leaving a "Bitcoin inheritance" worth 100 million yen, and has to pay 62 million yen in taxes?

Japanese netizens on the X platform wrote about the tax pressure of inheriting Crypto Assets in Japan, even hoping that the deceased would “convert to real estate in advance.” (Background: CZ calls for all platforms to establish a “Crypto Inheritance” function: regulation should allow underage children to own accounts; Binance launched the service in June.) (Additional context: Lawyers analyze how to safely inherit Crypto Assets.) How frightening is the Capital Gains Tax on Crypto Assets? A post by Japanese X platform user FIRE したゼニおぢ describes a simplified scenario: a father previously purchased Bitcoin for 10 million yen, and after its value increased to 100 million, he passed away. The family would face “inheritance tax of about 12 million,” and if they sell the Bitcoin afterward, they would also have to bear “income tax of about 50 million,” resulting in a double tax pressure. This seemingly amusing post appears to be a “hypothetical situation,” but it indeed elicited many comments from netizens, proposing various approaches from pre-death asset allocation to corporate structures. For example, “calculate taxes during life inheritance” to avoid discovering exaggerated tax estimates only after a relative's death. Some netizens also mentioned that “if inheriting real estate for descendants while still alive, the real estate inheritance tax and acquisition tax would also incur a lot of taxes, so it is better to hold cash until death.” Others believe that the Capital Gains Tax on inherited assets cannot be levied: “If the market price during inheritance is 100 million, if sold immediately, the market price for inheritance tax becomes the acquisition price, so the income tax is zero.” Finally, one netizen summarized with a pertinent remark: “With something like Bitcoin, everyone is at a disadvantage in terms of taxation, resulting in no one becoming wealthy. Understanding the tax system actually just means waiting for unsubstantiated tax reforms.” The high tax burden debate on Crypto Assets in Japan classifies personal profits from Crypto Assets trading as miscellaneous income under “comprehensive taxation,” taxed at a progressive tax rate of about 5% to 45%, plus about 10% local tax, totaling up to about 55%. This is different from the separate taxation of stocks and funds, which is about a single rate of 20% (including local tax). Additionally, the current tax system generally does not apply preferential tax treatments such as “loss carryforward deductions” for Crypto Assets as in the securities market. Although the Financial Services Agency of Japan plans to change the taxation on Crypto trading profits to a consistent 20% separate tax regardless of amount starting in 2026, referring to the Financial Instruments and Exchange Act for management and providing mechanisms for deferring up to 3 years of losses, this is still a policy proposal and requires formal legislation to pass and be implemented. Many in the Crypto Assets industry claim that even if Japan lowers the Crypto Gains Tax, it would still be at a super high level internationally. Related reports: Has Bitcoin inherited the American Dream? The shared pursuit of freedom, hope, and wealth. Threads finance hot article: Dad hasn't died yet “let's divide the inheritance first, pay 3% interest annually” should children sign? <Japanese netizen's father passed away, “Bitcoin inheritance” worth 100 million yen, to pay tax of 62 million?> This article was first published on BlockTempo, the most influential Blockchain news media.