-
Japan wants to reclassify 105 cryptocurrencies as financial products
-
New rules will require more transparency and insider trading protections
-
Government is considering cutting the crypto tax rate from 55 percent to 20 percent
-
Broader goal is to support Japan’s growing Web3 strategy
Japan Prepares A Major Regulatory Shift
Japan’s Financial Services Agency is preparing a major update to the country’s crypto rules. According to local reports, the agency plans to reclassify 105 cryptocurrencies, including bitcoin and ether, as financial products under the Financial Instruments and Exchange Act. This shift would place these assets in the same regulatory category as many traditional investment instruments.
Exchanges listing these assets will need to provide clear disclosures. This includes information about whether a token has an issuer, the design of its blockchain, and expected volatility. The rules are also expected to introduce new protections aimed at preventing insider trading in the crypto market.
A Push To Reduce Taxes On Crypto Income
Alongside the reclassification, Japanese officials are preparing a tax reform that could reduce the maximum tax rate on crypto income from 55 percent to 20 percent. The goal is to bring crypto taxation closer to stock investment rules and lower barriers for retail and institutional participation.
This tax proposal is expected to be reviewed in the next fiscal year. If approved, it would mark one of the most significant policy shifts for Japan’s domestic crypto market.
Japan Positions Itself As A Web3 Hub
After years of caution following the Mt. Gox collapse, Japan is now moving toward a friendlier stance. Regulators have recently explored allowing banks to trade crypto assets like traditional securities. The country also launched its first yen-pegged stablecoin, JPYC, as part of a broader stablecoin strategy.
These combined efforts show a coordinated attempt to make Japan a competitive Web3 center in Asia.
