Japan’s FSA plans to treat crypto financial products like securities, potentially lifting the ban on Bitcoin ETFs and reducing the tax rate on crypto assets from 55% to 20%.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Japan’s top-most financial regulator Financial Services Agency (FSA) is preparing to bring more clarity to crypto regulations and will be reportedly treating crypto financial products similar to securities. Under the new system, the agency is also planning to implement crypto tax cuts as well as approve spot Bitcoin ETFs.
As part of the proposed changes, the FSA is considering lifting the current ban on Bitcoin ETFs and reducing the tax rate on crypto assets from as high as 55% to 20%. This reform policy is expected to be announced in June, with legal amendments slated to be promoted during the 2026 ordinary session of the National People’s Congress.
As a result, the Japanese regulator is currently holding close consultations and study sessions with experts to assess whether the current crypto regulations are enough.
With the Donald Trump administration having a pro-crypto push, regulators across the globe are curious to study more about this industry. Instead of taking the regulation-by-enforcement approach, most regulators are now seeing cryptocurrencies as an integral part of the global financial system, and thus willing to work together with industry experts on regulatory matters.
Known for its crypto-friendly approach, Japan has been home to some of the top companies like Ripple Labs for the past few years. Other blockchain firms like Blockstream have also shifted base to Japan recently.
Blockstream identifies a prime opportunity to introduce its innovative Bitcoin Layer-2 and self-custody solutions to Japanese businesses and investors, marking a strategic expansion into a region where Bitcoin adoption is steadily growing.
However, Japan’s FSA is not willing to give up on user security issues and other compliance matters. In a recent development, the securities regulator directed Google and Apple to remove crypto exchange apps including the likes of Bybit and KuCoin from their respective stores citing major compliance issues.
Furthermore, seeing the massive demand for US Bitcoin ETFs in the first year of launch, Japan’s regulator is willing to lift the ban. This will facilitate more regulated participation in the country’s bustling crypto industry.
Japan’s public-listed firms like Metaplanet have already made the move drawing a leaf from Strategy’s (formerly known as MicroStrategy) Bitcoin approach. As a result, the firm has seen a massive 4000% appreciation in its stock price within just eight months of adopting Bitcoin BTC $87 291 24h volatility: 1.0% Market cap: $1.73 T Vol. 24h: $28.72 B . Currently, the firm holds over 1,700 BTC on its balance sheet and plans to increase these holdings to more than 10,000 BTC by the end of 2026, by issuing bonds and securities in the market.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
