This could strangely also be a very positive signal. This is basically the government saying:

We expect huge gains in crypto investments (so therefore we want to tax it).

Keep in mind tax will only apply to gains, so it confirms that in the near future they expect gains in the domain. When a government makes a statement like this, it's likely to be picked up by large investors (who probably already have great experience with minimalizing their tax rates).

I wish the Japanese government good luck with applying their new rules, it seems like a near impossible thing to do btw. How will they treat anonymous accounts on decentralized exchanges for example..? They will try to apply a centralized governing system to decentralized systems, that's probably not going to fly well.