Japan plans to reclassify crypto as a financial instrument under new regulatory rules.
The proposed changes will reduce the crypto tax from 55% to about 20%.
The Bitcoin ETF could ultimately be approved as part of Japan’s broader Web3 push.
Japan is taking code seriously, and the upcoming changes can shake everything from taxes to Bitcoin ETFs.
On June 24, the Financial Services Agency (FSA) released a document that could mark the turning point in the country’s approach to digital assets. title “Considerations regarding the structure of the systems surrounding crypto assets,” The report confirms that a new working group has been established to investigate major regulatory reforms.
These proposals will be further discussed at the Financial Services Council meeting on June 25th.
This is why you should care.
Cryptocurrency can be treated like a stock soon
Currently, Japan’s Crypto is regulated under the Payment Services Act. This is a framework that doesn’t really match how people today use these assets. The FSA is currently considering moving crypto under the Financial Product Exchange Act (FIEA), which officially treats digital assets as financial instruments.
That one change could open many doors.
There are big tax deductions on the table
What is one of the biggest outcomes of this shift? Low tax.
Under current rules, crypto investors reach a maximum of 55% of their comprehensive tax. However, under FIEA, the system switches to a flat self-valuation tax of around 20%, just like stocks.
This is a move that can make Japan far more attractive to both everyday investors and institutions, especially those who are being held back due to heavy tax burdens.
Bitcoin ETF may ultimately get the green light
Another big change: Japan may lift the ban on Bitcoin ETFs.
If crypto is treated as a financial product, it paves the way for a regulated crypto investment vehicle. As ETFs are gaining global traction, this could align the country with larger markets and attract new capital.
It’s not just hype! Web3 is currently a policy
These changes have not come out of nowhere. They are part of Japan’s broader push to grow the economy through innovation and digital assets.
Government’s Grand Design and Action Plan for New Capitalism (2025) Be clear: Cryptography, NFT, and other Web3 tools are part of a plan to increase productivity and extract value across Japan’s region. The goal is to leverage digital assets in a way that supports businesses, create investment opportunities and helps Japan compete globally.
Following the global shift
Interestingly, Japan’s sudden crypto momentum could be linked to growing support for US crypto, particularly under the Trump administration and pro-crypto states such as Texas.
For Japan, a country known for its cautious attitude, this appears to be a clear pivot from regulation to integration. And if these proposals pass, it could be the moment when Japan officially returns to the global crypto race.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
