Catenaa, Sunday, November 23, 2025- Japan’s Financial Services Agency has finalized plans to reclassify 105 cryptocurrencies, including bitcoin and ether, as financial products and is seeking to cut taxes on crypto gains from 55% to 20%, aligning them with stock income rates.
Under the proposed reclassification, crypto exchanges will be required to disclose details such as the issuer, underlying blockchain, and price volatility for each listed asset.
The FSA is also considering preventive measures against insider trading, potentially restricting executives and issuers from trading on non-public information, including listing schedules.
The reforms are expected to be submitted as amendments to Japan’s financial laws during the ordinary Diet session in 2026.
The tax adjustment would lower the maximum rate on crypto income to match stock investments and is slated for review in the coming fiscal year.
Japan has gradually shifted from a cautious stance following the Mt. Gox collapse to actively supporting Web3 adoption.
Recent initiatives include exploring ways for local banks to trade cryptocurrencies like traditional securities and launching a yen-pegged stablecoin, JPYC, in late October.
The reclassification and tax reforms aim to increase transparency, enhance market integrity, and encourage broader adoption of digital assets within Japan’s financial system.
Authorities hope the changes will position the country as a regional hub for cryptocurrency trading and innovation.
