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Japan Poised To Reclassify 105 Cryptocurrencies as Financial Products and Cut Taxes to 20%

According to Asahi, the FSA plans to take the package to the 2026 Diet session with insider‑trading bans and mandatory token disclosures central to the draft.

Overview

  • Local reports say the Financial Services Agency intends to move 105 listed tokens, including bitcoin and ether, under the Financial Instruments and Exchange Act’s securities-style oversight.
  • The tax proposal would shift profits on the covered assets from the current progressive system that can reach about 55% to a flat 20% rate aligned with stock trading.
  • Exchanges would be required to publish detailed information on each token, such as issuer presence, underlying blockchain, volatility profile, and other material risks.
  • Insider-trading restrictions would apply to crypto for the first time, barring trades based on non‑public listing timelines or issuer financial information by issuers, exchange staff, and related parties.
  • Banks and insurers could distribute crypto through securities subsidiaries and may be permitted to operate exchanges or custody services, though the FSA has not officially commented on the reported plans.