Japan May Soon Ease Crypto Taxes as Regulators Plan to Treat Bitcoin Like a Financial Asset
Japan Wants to Classify Bitcoin & Ethereum as Financial Products
Japan’s top financial regulator, the Financial Services Agency (FSA), plans to reclassify 105 cryptocurrencies, including Bitcoin and Ethereum, as official financial products.
This information comes from Asahi Shimbun, which says the FSA wants these assets to fall under the Financial Products Transaction Act, meaning tighter rules and supervision.
The FSA also plans to ask the government to lower crypto taxes, using a system similar to stock trading.
What This Means for Crypto Taxes in Japan
Right now, Japanese citizens must report crypto profits as “miscellaneous income”, which can be taxed as high as 55% for top earners.
If the FSA’s plan is approved:
- The 105 selected cryptocurrencies will be taxed as capital gains
- Instead of up to 55%, traders will pay a flat 20% tax rate
This would effectively end Japan’s complicated and unpopular crypto tax system—at least for major coins.
The FSA hasn’t officially confirmed this yet.
How the FSA Will Choose the 105 Approved Coins
The regulator is using several criteria to decide which cryptoassets qualify, including:
- Transparency of the project
- Financial stability and reputation of the issuer
- Strength and reliability of the underlying technology
- Risk of price volatility
New Insider Trading Rules for Crypto
The FSA also wants stricter rules against insider trading in the Japanese crypto market.
They plan to ban people or companies connected to crypto issuers or exchanges from trading coins if they know confidential information, such as:
- Undisclosed listing dates
- Financial details not yet made public
The goal is to include these new rules in Japan’s 2026 national budget discussions.
