Japan’s Financial Services Agency (FSA) has finalised plans to reclassify certain cryptocurrencies as financial products under the Financial Instruments and Exchange Act, alongside proposals to reduce taxes on crypto-related income.
According to a report by Asahi, the move will place 105 cryptocurrencies, including bitcoin and ether, under new disclosure rules.
Exchanges listing these assets will be required to provide details on key attributes such as whether the token has an identifiable issuer, its underlying blockchain, and its price volatility.
The FSA also intends to introduce measures to curb insider trading, potentially banning issuers and exchange executives from trading crypto assets based on non-public information, including listing schedules, The Block reported.
The proposed changes are expected to be submitted as amendments to Japan’s financial laws during the 2026 ordinary Diet session.
As these 105 digital assets move closer to being treated like traditional financial products, Japanese authorities are also seeking to reduce the tax rate on crypto income to align it with stock investments, lowering it from a maximum of 55% to 20%.
The tax reform will be reviewed in the coming fiscal year, according to Asahi.
Japan, once known for its cautious stance following the Mt. Gox collapse, has begun overhauling its regulatory landscape in an effort to position itself as a regional Web3 hub.
Last month, the FSA was reportedly exploring ways to permit local banks to trade cryptocurrencies in a manner similar to stocks and government bonds.
The agency has also been advancing a yen-pegged stablecoin initiative, with the country’s first local stablecoin, JPYC, launched on 27 October.
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