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The Japanese Financial Services Agency (FSA) has proposed extensive cryptocurrency reclassification to clean the way for the introduction of funds traded by cryptocurrency (ETF) and introduced 20% of digital assets tax.
Proposal, presented On Tuesday, Crypto proposes to recognize Crypto as “financial products” according to the extent of the Act on Financial Inspections and Exchange (FIEA), the same regulatory framework that manages securities and traditional financial products.
The proposed reclassification could also shift the current Japanese progressive tax system, which taxes the crypt profit at rates up to 55%, to a single 20%, reflecting the treatment of inventories. This change could increase the more attractive investment of the cryptoviště for retail and institutional players.
The proposed shift is part of the wider strategy of the “new capitalism” of the Japanese government trying to build the country as an investment economy.
Related: What does the Japanese crisis of fiscal debt mean for global crypto markets
Japan exceeds 12 million active cryptological accounts
This step comes in the middle of the growing interest in crypto as a legitimate investment asset. According to the FSA, more than 12 million domestic cryptological accounts have been active since January 2025, while assets were held on platforms exceeding 5 trillion of Japanese yen (about $ 34 billion).
In the FAS proposal, he also revealed that the crypto of ownership is now overcoming participation in some traditional financial products such as FX and corporate bonds, especially among technologically subtle retail investors.
The proposal also responds to an increase in institutional involvement around the world. FSA quoted data showing more than 1200 financial institutions, including US pension funds and Goldman Sachs, now on the list of us Spot Bitcoin ETF.
The aim of Japanese regulatory bodies is to support similar development on the domestic market, especially because the global fund flows into the crypto.
Related: Bank of Japan Pivot to Qe can drive the bitcoin rally – Arthur Hayes
SMBC, Ava Labs to explore Stablecoins in Japan
In April Sumitomo Mitsui Financial Group (SMBC), Tis Inc., Ava Labs and Fireblocks signed a memorandum of understanding to explore Commercialization of stablecoins in Japan. Cooperation will focus on publishing stablecoins linked to the US dollar and Japanese only.
The group also plans to explore the use of stablecoins to settle tokenized assets in the real world, such as stocks, bonds and real estate.
In March released Japan its first license To allow companies to deal with Stablecoins in the SBI VC, a subsidiary of the local financial conglomerate of SBI, which stated that it is preparing to support USDC Circle (USDC).
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