Particle.news
Download on the App Store

Japan Weighs Crypto Reclassification With 20% Tax and Insider-Trading Rules

The FSA is expected to seek legislation in the 2026 ordinary Diet session, and it has not commented on the reports.

Overview

  • Local media report that the Financial Services Agency plans to fold about 105 listed tokens, including bitcoin and ether, into the Financial Instruments and Exchange Act.
  • The framework would apply insider-trading restrictions to covered digital assets and bring securities-style oversight to the market.
  • Domestic exchanges would be required to publish standardized disclosures for each approved token, outlining issuer status, underlying technology, volatility and other material risks.
  • Banks and insurers could sell approved crypto products through their securities subsidiaries under the proposal, broadening distribution channels.
  • The plan includes a flat 20% tax on crypto gains to replace the current progressive rates of up to roughly 55%, with industry groups warning that compliance costs could strain smaller exchanges.