Japan considers reclassifying Bitcoin and cryptocurrencies as financial products and proposes a tax reduction of 20%
The Financial Services Agency of Japan (FSA) plans to reclassify cryptocurrencies as financial products, introducing mandatory disclosures for 105 listed tokens such as Bitcoin and Ether, strengthening rules on insider trading and reducing the tax rate on cryptocurrencies from 55% to a fixed 20% under the new regulations proposed for 2026.
The reform of the cryptocurrency regulation by the Japanese FSA reclassifies digital assets as financial products, reduces taxes to 20%, and prohibits insider trading. Stay informed about these changes that will come into effect in 2026 and are transforming the adoption of cryptocurrencies; explore their impacts now.
The new Japanese cryptocurrency regulation implies that the Financial Services Agency (FSA) will reclassify digital assets as financial products under the Financial Instruments and Exchange Act.
This change aims to strengthen oversight and protect investors by applying existing financial rules to cryptocurrencies. The proposal, detailed in reports from Asahi Shimbun, anticipates implementation in 2026 after parliamentary approval.
According to the proposed framework, cryptocurrency exchanges in Japan will be required to disclose detailed information about 105 listed cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).
This includes identifying whether an asset has a clear issuer, the underlying blockchain technology, and its volatility characteristics. These measures, as described by the Financial Services Authority (FSA), aim to promote transparency and help investors make informed decisions.
