Crypto assets (also known as virtual currencies) include a mechanism called "staking," which lets you earn rewards simply by holding and depositing a given asset. Because staking can generate rewards from assets you already hold, not just from buying and selling, it is an option worth considering for anyone planning to hold crypto assets long term.
That said, staking rewards are not a "guaranteed win just for parking your coins." The eligible assets, reward rates, and payout timing all vary by service, and in some cases you cannot sell or withdraw your assets right away while they are locked up. In addition, once you receive a reward, you may need to check the tax treatment and keep records for it.
This article covers the basics you should know about staking rewards before you start staking crypto assets.
What Are Crypto Staking Rewards?
Crypto staking rewards are rewards you receive for holding a given crypto asset and contributing, through that holding, to the stable operation of a blockchain (related article: What Is Crypto Staking? A Full Breakdown of Its Safety, Benefits, and Drawbacks (in Japanese)).
Japan's Financial Services Agency (FSA) also describes staking this way: it is a mechanism that lets holders receive rewards, paid in crypto assets, in exchange for holding a crypto asset and thereby contributing to the stable operation of a blockchain.
"Staking" refers to a mechanism by which a person who holds a crypto asset can receive a reward, paid in crypto assets, in return for contributing to the stable operation of the blockchain.
Source (in Japanese): Review of the Framework for Systems Related to Crypto Assets | Financial Services Agency
Rather than performing the technical work of staking themselves, most individual users receive staking rewards by using a staking service offered by a licensed crypto asset exchange service provider or a related provider.
How Are Staking Rewards Paid Out?
How staking rewards are paid out depends on the exchange or service you use. In some cases, rewards are credited automatically simply for holding the eligible asset; in others, you must first apply to the service and deposit a set amount of the crypto asset.
Because of this, if you want to receive staking rewards, it is important to confirm the following in advance:
- Which asset you need to hold
- How long you need to keep it deposited
- When the reward will be paid out
Even for the same type of staking reward, using a service without checking these conditions can mean you fail to receive the reward at the time you expected, or that you cannot move your assets right away.
Eligible Assets and Reward Rates Differ by Service
Not every crypto asset is eligible for staking rewards. Each service decides which assets qualify, and even for the same asset, the reward rate and the conditions for receiving it can differ from one service to another.
For example, Bitcoin might be eligible for staking on Service A but not on Service B. Similarly, even a service that advertises a high reward rate may not actually be convenient to use once you factor in the lock-up period, fees, and the conditions for canceling early.
For that reason, when comparing staking rewards, you should not look at the reward rate alone. You also need to check the following together:
- Eligible assets
- Minimum deposit amount
- How the reward is paid out
- Fees
- Withdrawal conditions
Even if you plan to hold long term, you may still need to sell or withdraw partway through, so how freely you can move your crypto assets is an important factor to weigh.
Check the Timing and Conditions for Receiving Rewards
Some services pay out staking rewards daily, while others pay in a lump sum "weekly, monthly, or after a set period." How often rewards are paid also affects how easy it is to manage your assets and to keep tax records.
Some services also require you to hold the deposit for a minimum period before you become eligible for a reward. Rewards do not necessarily start accruing the moment you apply — there may be a qualifying date or an accrual period involved.
Before you start receiving staking rewards, it is important to confirm the conditions under which a reward is generated, when it is paid out, and from what point you can actually use it. Using a service without checking these conditions can lead to a mismatch, such as "I was holding the asset but wasn't eligible for the reward" or "the reward didn't arrive when I expected."
What to Watch for When Looking at Staking Reward Rates
When people first look at staking rewards, the reward rate is usually the first thing they check. It is certainly an easy-to-understand metric for comparing services. However, the staking reward rate does not guarantee future profit.
Because crypto asset prices can swing widely, even if the number of coins you receive as a reward increases, you can still end up worse off in yen terms if the price of the asset itself falls.
For that reason, when considering a staking reward, you need to think beyond "what percentage will I get" and also weigh "which asset, for how long," and "how would I respond if the price fell."
The Displayed Rate Does Not Guarantee Future Profit
The rate displayed by a staking service does not guarantee future profit. The actual reward can vary depending on network conditions, the service's terms, and the specifications of the eligible asset.
Also, even when the displayed rate is quoted as an annual rate, using the service for only a short period does not necessarily mean you receive that full annualized amount. The annual rate is merely a benchmark converted under certain assumptions; the actual amount you receive depends on the amount deposited, the holding period, and the payout conditions.
So rather than simply assuming "a higher rate is better," you need to check what period and what conditions that rate applies to. Campaign rates and limited-time rates in particular often differ from the standard terms, so extra caution is warranted.
You Can Still Lose Money on a Price Decline, Even After Receiving Rewards
With staking rewards, the quantity of your crypto asset can increase. But even if the quantity increases, if the price of that asset falls sharply, you can end up with a loss when converted into yen.
For example, say you held 100 units of a crypto asset priced at ¥1,000 (roughly $6.70) per unit; that would put its value at ¥100,000 (roughly $670). If staking rewards then increase your holding to 110 units, but the price falls to ¥900 (roughly $6) per unit, the value would come to ¥99,000 (roughly $660).
In this case, your holding has grown from 100 units to 110 units, but the value in yen has fallen from ¥100,000 to ¥99,000. In other words, even though the number of coins increases thanks to staking rewards, if the price decline is large enough, the value of your assets can fail to grow, or can even shrink.
For that reason, when looking at a staking reward, you need to think not just about "how many more coins will I get," but also about "whether I could keep holding even if that asset's price fell." If you judge a service purely on its reward rate, you risk overlooking how much your actual asset value could move.
What to Check Before Receiving Staking Rewards
Before receiving staking rewards, you should check how freely you can move your assets, whether you can cancel partway through, and whether you can review your history. If you use a service without checking the following, you may run into trouble when the price moves sharply or when you need records for tax purposes:
- Lock-up period
- Withdrawal restrictions
- Whether early cancellation is possible
- Fees
- How to check your reward history
Staking can pair well with a long-term holding strategy, but even if you intend to hold long term, you may still end up needing to move funds or sell on short notice. That is why it is important to check the conditions before you start.
Check Whether There Is a Lock-Up Period or Withdrawal Restrictions
Before using a staking service, you need to check when you will actually be able to move the crypto asset you deposit. This is because staking includes not only types you can unstake at any time, but also lock-up services in which you cannot withdraw your assets for a set period.
If a lock-up period is set, then during that period you generally cannot sell your deposited crypto asset or send it to another wallet or exchange. In other words, while you may be able to earn a reward, your freedom to move that asset is reduced for a set period.
This matters because crypto asset prices can move sharply. Even if the price crashes during the lock-up period, you may not be able to sell right away to limit your losses. Likewise, even if you want to buy a different asset or move funds to another exchange, you may not be able to do so until the lock is released.
That said, some services do let you apply to release the lock partway through. Even then, you are not always able to move your assets immediately after applying — there may be a waiting period before the release takes effect, and the reward you receive may be reduced or a fee may apply (source: OKJ (in Japanese)).
Before you start staking, you should therefore check not only whether a lock-up period exists, but also its exact length, whether early release is possible, when you can withdraw after release, and how rewards and fees are handled if you cancel early.
Check Whether Your Reward History Can Be Used for Tax Calculations
If you receive staking rewards, you need to check whether you can retain your reward history in a form usable for tax calculations. Most exchanges let you check reward history or transaction reports, but what items are shown, whether CSV export is available, how far back you can retrieve records, and whether a yen-equivalent value is displayed all vary by service.
Staking rewards in particular are often paid in small amounts across many separate payouts. If you cannot organize that information as it comes in, it becomes time-consuming later when you need to work out your total income for the year.
Major domestic exchanges generally provide some way to check staking rewards and transaction history. For example, bitFlyer states that received staking rewards can be checked from the "Transaction Report" after logging in on a PC (in Japanese). GMO Coin has also announced that, from January 24, 2026, it extended the retrievable period for crypto account transaction history CSV downloads from the previous "most recent five years" to cover records from 2018 onward (in Japanese).
Because specifications differ by service, before you start staking it is worth checking whether you can view your reward payout history, whether you can save it as a CSV or report, and how far back you can retrieve past records.
Staking Rewards Can Be Subject to Tax
Staking rewards are basically paid out in crypto assets. That means no yen is deposited into your bank account — what typically happens is that the quantity of the crypto asset you hold simply appears to increase.
Looking at this alone, you might think, "I haven't sold anything, so taxes don't apply." However, if you leave this assumption unchecked after receiving a staking reward, you risk later discovering you failed to report income you should have. That is because, for staking, the tax treatment at the point you acquire the reward also needs to be confirmed.
Where crypto assets are acquired through mining, staking, lending, or similar means, any profit arising from that acquisition is subject to income tax or corporate tax.
Source (in Japanese): Tax Treatment of Crypto Assets, etc. | National Tax Agency (NTA)
From here, this article explains the tax treatment you should check at the point you receive a staking reward, and the cases in which a final tax return becomes necessary.
Tax Treatment Must Be Confirmed at the Point You Receive a Reward
Staking rewards can require tax confirmation at the point you receive the crypto asset as a reward. According to the NTA's FAQ, when you acquire a crypto asset through staking or similar means, the value of that asset at the time of acquisition must be included in your gross income.
The value (fair market value) of the acquired crypto asset at the time of acquisition is included in gross income for purposes of calculating income (or, for corporations, in taxable revenue), and expenses required for mining and similar activities are deductible as necessary expenses in calculating income (or, for corporations, as deductible expenses).
Source (in Japanese): Tax Treatment of Crypto Assets, etc. | National Tax Agency (NTA)
For example, suppose you receive 1 ADA as a staking reward, and at that moment 1 ADA is worth ¥100 (roughly $0.67). For tax purposes, that is treated as ¥100 (roughly $0.67) of income, even though you have not sold it or converted it to yen. In other words, the reward is treated as income based on its fair market value at the time you receive it, regardless of whether you have cashed it out.
On the other hand, if you incurred costs directly related to staking, those costs can be deducted as necessary expenses. For example, if an exchange charged a fee directly required to earn the staking reward, that fee can be subtracted from your income when calculating your taxable amount.
Some people assume that "as long as I haven't sold my crypto assets for yen, taxes don't apply." However, with staking rewards, the income calculation may be required at the point you receive the crypto asset as a reward, so this is a point that requires caution.
In our own survey on how staking and lending profits are reported (survey on reporting practices for staking and lending income, in Japanese), only 22.5% of respondents clearly understood that staking rewards are subject to tax reporting, while 23.3% said they assumed rewards were not reportable because they are "a different thing from trading gains."
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Staking rewards are a convenient mechanism, but misunderstanding their tax treatment can lead to under-reporting, so please take care.
A note on the current tax framework (as of July 2026): under current law, gains from selling crypto assets are classified as miscellaneous income and taxed under Japan's aggregate (comprehensive) taxation system. On July 15, 2026, an amended Financial Instruments and Exchange Act (FIEA) passed a plenary vote in the House of Councillors, which will move crypto assets under the FIEA's framework for financial instruments; a flat 20% separate self-assessment tax rate is expected to apply starting from the fiscal year after the amended law takes effect (currently expected to be January 2028). Under the current system, losses from crypto asset transactions can only be offset against other miscellaneous income — they cannot be offset against employment income or other income categories.
Keep a Record of the Receipt Date, Quantity, and Yen-Equivalent Value
If you receive staking rewards, you need to keep your reward history in a state you can review later in order to file a final tax return. If you use a major domestic exchange, you can generally check your history through a report or CSV export.
However, being able to view your history on-screen and being able to organize it in a form usable for filing are two different things. How much detail an exchange's history shows, whether it can be exported as CSV, and how far back you can retrieve past records all vary by service.
This matters especially if you use multiple exchanges or wallets. If the export format and retrievable period differ from one exchange to another, you may need to cross-check multiple sets of data when tallying your annual reward total. And if you are staking directly from a wallet, you may not be able to obtain a filing-ready report with a yen-equivalent value already calculated, unlike with an exchange.
For that reason, before you start staking, it is worth checking where you can view your reward history, whether you can download it as a CSV or transaction report, and how far back you can retrieve past records.
Because staking rewards are often paid in small amounts across many separate payouts, trying to organize everything after the fact can be time-consuming. It is important to make sure from the start that you can obtain data usable for tax filing and gain/loss calculations.
Conclusion
Staking rewards are a mechanism that lets you earn rewards while holding crypto assets. Because they let you put your holdings to work in a way that goes beyond simply buying and selling, staking is a worthwhile option to consider for anyone planning to hold long term.
That said, it is risky to start staking based solely on the displayed reward rate. Staking rewards vary in how they are paid out depending on the eligible asset and the payout conditions, and with services that impose a lock-up period, you may not be able to sell or withdraw right away even when the price moves sharply. Even if the number of coins you receive as a reward increases, if the price of that asset falls enough, the yen-equivalent value of your assets can decline.
Managing your position after you start receiving rewards also matters. Because staking rewards can require tax confirmation, it is important to keep your reward history in a reviewable state. If you use multiple exchanges or wallets, your history can end up scattered, so you should also check whether you can obtain data usable for tax filing and gain/loss calculations.
When using staking, do not judge a service by its rate alone — consider the payout conditions, how freely you can move your assets, price risk, and how manageable your record-keeping will be. Even with a mechanism that lets you earn rewards, it is important to understand the conditions and risks before you use it.
This article is for informational purposes only and does not constitute financial or investment advice. Please consult a qualified professional before making investment decisions.
