Reclassifying cryptocurrencies from digital payment methods to financial products could increase investor confidence and promote widespread adoption.
Japan's Financial Services Agency (FSA) also proposed reducing cryptocurrency capital gains tax to a flat rate of 20%, instead of the current maximum of up to 55%.
Japan's Financial Services Agency (FSA) has proposed reclassifying cryptocurrencies as financial products instead of just digital means of payment.
If approved, this change under the Financial Instruments and Exchange Act (FIEA) would bring cryptocurrencies under the same legal framework as traditional securities.
As part of this reform, the FSA also proposes lowering cryptocurrency taxes to a flat 20%, much lower than the current maximum of 55%.
The goal is to make it easier for individual and institutional investors to access the cryptocurrency market.
The reclassification could also pave the way for the launch of cryptocurrency exchange-traded funds (ETFs) in Japan, demonstrating the country’s gradual expansion into digital asset adoption.
Data Shows Cryptocurrency Ownership Surpasses Participation in Forex and Bond Markets
Source: FSA
Japan, while pioneering in cryptocurrency regulation, maintains strict licensing and compliance standards. Notably, the FSA announced that as of January 2025, there were over 12 million cryptocurrency accounts in the country.
The value of assets held in these accounts exceeds 5 trillion yen, or about $34 billion, surpassing participation in traditional financial instruments such as foreign exchange and corporate bonds.
The popularity of cryptocurrencies is increasingly evident among tech-savvy investors, reflecting a trend toward viewing cryptocurrencies as a legitimate investment channel.
Globally, financial institutions are increasingly involved. By 2025, more than 1,200 institutions, including US pension funds, will reportedly own US-listed Bitcoin [BTC] ETFs.
The FSA's proposals, which will be discussed at the Financial System Council meeting on June 25, aim to reclassify cryptocurrencies from digital payment methods (under the current Payment Services Law) to financial products under the Financial Instruments and Transactions Law.
This transition will bring enhanced investor protections, clearer regulations, and open the door to crypto ETFs in Japan.
In parallel, major financial institutions are actively exploring stablecoin opportunities.
In April, Sumitomo Mitsui Financial Group (SMBC), TIS Inc., Ava Labs (Avalanche), and Fireblocks signed a memorandum of understanding to support the launch of stablecoins pegged to the Japanese yen and the US dollar.
The initiative complements the FSA’s proposal to reclassify cryptocurrencies, reflecting the country’s broader strategy to integrate digital assets into the traditional financial system.
Source: https://tintucbitcoin.com/japan-de-xuat-etf-tien-dien-tu-cat-thue/
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