Cryptocurrencies To Be Classified As Financial Products In Japan

Crypto To Remain Separate

The FSA intends to submit a bill to revise the Financial Instruments and Exchange Act as early as next year, with internal discussions already underway.

Source: FSA

Cryptocurrencies would likely fall under insider trading laws but remain separate from traditional securities like stocks. If the changes pass, crypto firms would need to register with the FSA, although it’s unclear how overseas companies would be regulated.

Pushing For Tax Cuts

Earlier this month, Japan issued its first stablecoin license to SBI VC Trade, a subsidiary of the financial group SBI. The government is also pushing for tax cuts on crypto capital gains, reducing the rate from 55% to 20%.

Additionally, the FSA may lift a ban on crypto-based exchange-traded funds (ETFs) to align with Hong Kong’s policy.