Japan moves to reclassify crypto and adopt major tax relief: report
Japan plans to reclassify 105 cryptocurrencies as financial products and cut crypto income tax from 55% to 20%.Summary
Japan's Financial Services Agency (FSA) has finalized plans to reclassify 105 cryptocurrencies, including Bitcoin and Ether, as financial products under the Financial Instruments and Exchange Act. This reclassification will mandate disclosure requirements for exchanges regarding token characteristics like the issuer, underlying blockchain, and volatility. The FSA also intends to introduce preventive measures against insider trading, potentially banning executives and issuers from trading based on non-public information, such as listing schedules. These legislative amendments are expected to be submitted in the 2026 ordinary Diet session. Concurrently, Japanese authorities are seeking significant tax relief, aiming to lower the maximum tax rate on crypto income from 55% to 20%, aligning it with stock investment taxes, with a review expected in the coming fiscal year. These moves signal Japan's active reform of its financial system to establish itself as a Web3 hub.
(Source：The Block)