according to materials from the website - By Coinlive.me
The Financial Services Agency of Japan and the ruling party have announced changes to the regulation of cryptocurrency asset classification in accordance with securities legislation, which is planned to be implemented by the beginning of 2026, with the aim of modernizing the market structure.
These regulatory reforms could transform Japan's digital asset market, enhancing investor protection and aligning it with global standards, which, in turn, could stimulate interest from institutional structures and potentially stabilize the sector.
The Financial Services Agency of Japan (FSA) is proposing to reclassify certain tokens in accordance with securities legislation, going beyond simple tax regulation. According to official FSA materials, these new measures aim to improve market structure and protect investors.
The Liberal Democratic Party and the FSA are leading these changes. They plan to transition to a cryptocurrency taxation model based on financial income in 2025, as well as introduce new licensing requirements for intermediaries. "Our proposed shift to separate taxation of financial income aims to clarify the regulatory framework for crypto assets and create a fair environment for innovation," said the LDP Web3 project team.
The immediate effect could change institutions' approach to working with tokenized assets. New licenses and stricter market rules are expected to emerge, which will open clearer pathways for intermediation in the security tokens and stablecoins space. According to the amendments to the law presented to the FSA, "the introduction of new licenses for intermediaries will simplify the pathway for institutional investors to the security token market, promoting growth and innovation."
These measures have significant political and financial implications, potentially enhancing Japan's competitiveness in digital asset markets. The legislative changes aim to ensure transparency and strengthen market conduct rules.
Japan is taking steps to revise its regulatory framework regarding cryptocurrencies. These comprehensive changes indicate a strategic shift towards modernizing regulation, moving away from a simplified view of tax reduction as the only solution.
Research shows that potential outcomes include increased institutional participation and growth in the market for tokenized securities in Japan. Historical trends suggest that Japan's emphasis on legal clarity and investor protection is likely to shape its regulatory framework.