Japan Wants to Classify Crypto Assets As Financial Products and Lift Ban on Bitcoin ETFs

CN
17 hours ago

Japan’s Financial Services Agency (FSA) is considering significant reforms to its crypto regulations, aiming to classify crypto assets as financial products akin to securities. This move seeks to enhance investor protection by mandating more comprehensive disclosure from companies.

According to Nikkei, the FSA has initiated closed-door meetings with experts to assess the adequacy of current virtual currency regulations. The agency plans to announce policy reforms in June 2025, with legislative amendments anticipated during the regular Diet session in 2026.

A notable aspect of the proposed reforms is the potential reduction of the existing crypto tax rate from up to 55% to 20%, aligning it with the financial income tax rate. This adjustment aims to protect investors and revive the market.

Additionally, the FSA is considering lifting the ban on bitcoin spot ETFs, reflecting a response to international developments such as the U.S. Securities and Exchange Commission’s approval of bitcoin and ether spot ETFs.

These initiatives look to boost Japan’s outlook to fostering a more secure and attractive environment for crypto investments, balancing investor protection with market revitalization.

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