The Japanese Financial Services Agency (FSA) reported that it offered to classify cryptocurrencies as financial products, allowing them to apply a 20% fixed tax rate to them since 2026 instead of the current progressive one, reaching 55%.

The change in the approach will open the way for launching spinal exchanges on Bitcoin and other digital assets, since cryptocurrencies will be blocked in accordance with the Law on Financial Instruments and Exchanges.

The current legislation of Japan on cryptocurrencies considers digital assets mainly as the form of digital payment regulated by the Law on Payment Services. According to the FSA, this approach to regulation is outdated and no longer reflects the internal content of the crypto market.

Finance Minister Katsunobu Kato (Katsunobu Kato) declaredthat the reform proposed by the FSA supports the strategy of “new capitalism” aimed at stimulating investment and innovation in Japan. The head of the financial department believes that against the background of the risk of the devaluation of yen, alternative assets, such as bitcoin, can become part of a diversified portfolio of Japanese companies, and the ministry will focus on creating a more attractive trade environment for cryptocurrency trafficking.

Earlier, FSA announced the creation of a new bureau, which since 2026 will supervise the cryptocurrency market of Japan.