Japan is taking cryptocurrencies more seriously, and the upcoming changes could transform everything from taxes to Bitcoin ETFs.
On June 24, the Financial Services Agency (FSA) announced a document that could mark a turning point for the country's approach to digital assets. Titled 'Considerations on the Structure of the System Surrounding Cryptocurrency Assets,' the report confirms that a new working group has been established to explore major regulatory reforms.
These proposals will be further discussed at the Financial Services Council meeting on June 25.
Here are the reasons why you should care.
Cryptocurrencies may soon be seen as stocks.
Currently, cryptocurrencies in Japan are regulated under the Payment Services Act – a framework that doesn't quite fit how people use these assets today. The FSA is currently considering moving cryptocurrencies under the Financial Instruments and Exchange Act (FIEA), which would officially classify digital assets as financial products.
One single change could open many doors.
A significant tax cut is being considered.
What is one of the biggest outcomes of this change? Lower tax rates.
According to current regulations, cryptocurrency investors face a comprehensive tax rate of up to 55%. But under the FIEA, the system will shift to a fixed self-assessment tax rate of around 20%, similar to stocks.
This move could make Japan much more attractive to investors and organizations, especially those who are still hesitant due to the heavy tax burden.
Bitcoin ETFs could finally get the green light.
Another major change is about to happen: Japan may lift the ban on Bitcoin ETFs.
If cryptocurrencies are considered a financial product, it will pave the way for regulated cryptocurrency investment vehicles – something Japan has held back for years. With ETFs garnering global attention, this will put the country on par with larger markets and potentially attract new capital.
It's not just hype! Web3 is the current policy.
These changes are not happening by chance. They are part of Japan's broader effort to develop the economy through innovation and digital assets.
The government's large action plan and design for new capitalism (2025) outlines that cryptocurrencies, NFTs, and other Web3 tools are now part of the plan to boost productivity and unlock value across sectors in Japan. The goal is to support businesses, create investment opportunities, and harness digital assets in a way that helps Japan compete globally.
Keeping track of global changes.
Interestingly, the sudden growth of cryptocurrencies in Japan may be related to the increasing support for cryptocurrencies in the United States, particularly under the Trump administration and in pro-crypto states like Texas.
For Japan, a country known for its cautious stance, this seems like a clear turning point from regulation to integration. And if these proposals are approved, this could be the moment Japan officially returns to the global cryptocurrency race.