Japan’s Financial Services Agency (FSA) is considering reclassifying crypto assets as financial products to enhance investor protection and may lift its ban on Bitcoin ETFs.
Japan’s Crypto Regulatory Overhaul
Japan’s Financial Services Agency (FSA) is reviewing crypto regulations to categorize digital assets as financial products similar to securities. This change would impose stricter disclosure requirements on companies to protect investors.
Legislative Changes Expected in 2026
According to Nikkei, the FSA has started closed-door discussions with experts and plans to announce policy reforms in June 2025, with legislative amendments expected in 2026.
Tax Reforms and Bitcoin ETF Consideration
One major proposal includes reducing Japan’s crypto tax rate from up to 55% to 20%, aligning it with the financial income tax rate. Additionally, the FSA is considering lifting the ban on Bitcoin spot ETFs, following global trends like the U.S. SEC’s recent approvals.
Balancing Investor Protection and Market Growth
These regulatory updates aim to create a secure and competitive environment for crypto investments in Japan while ensuring greater transparency and protection for investors.
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