According to the FSA proposal, the law on payment services will no longer apply to cryptocurrencies. Digital assets will fall under the law on financial instruments and exchanges (FIEA), which regulates securities and traditional financial products.
If crypto acts are adjusted along with securities and investment products, this will open up opportunities for launching cryptocurrency exchange funds (ETFs) in Japan. FSA noted that more than 1,200 financial institutions, including Goldman Sachs Bank and American pension funds, are invested in the Bitcoin spotal, which are quoted in the United States. Japan’s regulators seek to develop a similar trend within their country.
FSA is also going to introduce a fixed tax rate of 20% on income from cryptocurrency operations, reducing the tax on capital in cryptocurrency, which now has up to 55%. This regulatory reform will be implemented in accordance with the government strategy of the “new capitalism” designed to attract investments in Japan.
The agency noted the growing interest in cryptocurrencies – local traders consider them viable investment assets. As of January 2025, there were more than 12 million cryptocurrency addresses with assets worth more than 5 trillion yen (about $ 34 billion) in the country. Retail investors prefer to invest in crypto assets, and not in foreign currency or corporate bonds, the department noted.
Previously, FSA proposed to divide digital assets into two categories: commercial, issued to attract funds, and non -profit (bitcoin and ether). The agency also offered to issuers in more detail to disclose information about tokens.
Source: Bits
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