Changpeng "CZ" Zhao, founder and former CEO of Binance, has expressed support for reducing cryptocurrency fees as a means to stimulate economic growth. His comments were made in response to Japan's plan to ease crypto tax rates, which he shared on the social media platform X.
"Great step for Japan," said Zhao. "Lower "fees" = more economic growth."
Japan's Financial Services Agency has proposed a reform that would shift individual cryptocurrency gains from progressive "miscellaneous income" rates, which can reach up to 55%, into a separate category taxed at a flat rate of 20%. This change is planned for implementation in the fiscal year 2026. The proposal aims to align digital assets with equities and transition filings to separate self-assessed taxation. However, it remains subject to approval by the cabinet and Diet through the annual tax reform process.
According to Reuters, Japan's participation in the cryptocurrency market is significant. Total crypto-asset holdings reached approximately ¥5 trillion (around $33 billion) in July 2025 before decreasing slightly to ¥4.9 trillion by the end of September. The marketplace app Mercari hosts about 3.4 million crypto accounts, representing roughly a quarter of the national total. This indicates a broad retail presence beyond specialist exchanges and continued mainstream adoption despite market fluctuations.
In fiscal year 2024, Japan has already taken steps to ease corporate burdens by exempting net unrealized gains on third-party crypto assets from corporate taxation. This replaces year-end mark-to-market taxation with taxation upon realization. The Ministry of Finance's fiscal year 2024 key highlights emphasize this exemption as part of creating a more favorable Web3 environment and reducing balance-sheet volatility for companies developing tokenized services and loyalty programs.
Zhao founded Binance in 2017 after building trading systems during his career. Under his leadership, Binance became the world's largest cryptocurrency exchange by activity. According to The Motley Fool, Binance handles a median daily volume of approximately $16.3 billion and offers over 500 coins, highlighting its scale. Since Zhao stepped back from his role as CEO, Richard Teng has focused on compliance while maintaining the platform's leading market share.