Japan has just officially announced a crypto tax reform. Once the news broke, many people were excited—tax rates dropped directly from 55% to 20%. But a closer look at this policy suggests the waters might not be so shallow.

This reform appears to be a tax cut on the surface, but in reality, it’s a market filtering mechanism. Capital and attention will inevitably flow toward leading assets like Bitcoin and Ethereum, while smaller, less liquid coins and new projects will face greater difficulties. In short: mainstream assets benefit from the dividends, while non-mainstream tokens are marginalized.

For investors, how should they navigate this policy environment? Here are some suggestions for reference:

**Position Adjustment Priority**: Focus on cryptocurrencies that are easiest to align with compliance, such as Bitcoin and Ethereum. They are more policy-friendly, have better liquidity, and pose relatively lower risks.

**Beware of Small Coins and Rug Pull Projects**: The policy risks for these projects are already at maximum. Once regulation is fully implemented, the likelihood of liquidity drying up is high. If you haven't exited now, it might be too late later.

**Pay Attention to Project Compliance Background**: When investing in the future, check whether the project has proper licenses, team background, and compliance progress, as these will be important valuation references.

Ultimately, this tax reform is a targeted traffic diversion. Japan is using tax cuts as bait to steer market participants toward a direction that is easier to regulate. The wild era of the crypto industry is coming to an end; compliance is the trend. Instead of complaining about new rules, it’s better to adapt quickly. Those who understand policy will always be one step ahead of those who are controlled by it.