Japan Moves to Put Bitcoin Under Financial Product Rules, Slash Crypto Taxes to 20%

Japan's Financial Services Agency (FSA) has finalized a plan to reclassify 105 cryptocurrencies, including Bitcoin, as financial products under the Financial Instruments and Exchange Act. This move will subject these assets to stringent disclosure, reporting, and market surveillance standards used for traditional securities, requiring exchanges to detail information like token issuers and volatility. Furthermore, the FSA intends to introduce explicit insider trading rules for the crypto sector. Alongside regulatory tightening, the FSA is pushing for a significant tax overhaul, aiming to reduce the current maximum crypto profit tax rate from 55% (classified as miscellaneous income) to a flat 20%, aligning it with equity taxation. These changes, expected to be submitted in the 2026 Diet session, support Japan's growing Web3 ambitions and follow recent moves allowing banks to hold volatile assets and operate crypto services, reflecting increased domestic adoption.

(Source：Bitcoin Magazine)