As of June 25, 2025, at 14:33 EEST, the Japanese Financial Services Agency (FSA) proposed to classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act (FIEA). This initiative, which will be discussed at the Financial System Council meeting on June 25, involves reclassifying digital assets from the status of payment methods (under the Payment Services Act) to that of investment instruments. Such a move could allow the launch of a Bitcoin ETF and reduce taxes on cryptocurrency profits from 55% to 20%, aligning them with stock rates.
The FSA aims to strengthen investor protection, impose a ban on insider trading, and enhance market transparency. As of January 2025, there are over 12 million active crypto accounts in Japan with assets totaling 5 trillion yen ($34 billion). This reflects a growing interest in cryptocurrencies as an investment class. The reform is part of the 'New Capitalism' strategy aimed at economic growth through innovation.
Experts believe this could make Japan a leader in the crypto industry, although it raises concerns about regulating foreign platforms. Changes are planned to be implemented by 2026.
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