
Japan Maintains Cautious Approach to Crypto ETFs amid Global Surge
This hesitant approach comes as a surprise, given Japan’s self appraisal as a digital asset-friendly country.
This hesitant approach comes as a surprise, given Japan’s self appraisal as a digital asset-friendly country.
Japan is poised to reclassify cryptocurrencies under financial instruments legislation, potentially reducing crypto taxes from up to 55% to 20%.
The FSA seeks to have crypto assets treated in a similar manner to traditional financial assets, saying that it is worth a considerable amount of consideration.
This ongoing exploration shows how blockchain could make public services more efficient and transparent.
Digital asset service providers already registered under the FIU will have to apply for new licenses with the FSA before the end of next year.
The countries created a policymaking group to further the asset tokenization tests and help with navigating legal and compliance concerns.
Japan has been actively reassessing its crypto tax regulations since last year, with a focus on creating an environment that encourages the growth of blockchain startups within the country.
Expectations are that the new rule must have been completed by midyear and adopted by that same time.
The new move by Japan to allow the distribution of stablecoins means that there would be stricter regulations on Anti-Money Laundering controls.
The Stablecoin bill passed by Japanese lawmakers is bound to take effect 12 months from now, and irrespective of these delays, the bill will still make the Asian giant the first to pioneer this area of the growing blockchain ecosystem.
Top American cryptocurrency exchange, Coinbase Global Inc has announced its expansion into the Japanese market.
Japan is not the only country to have released a statement saying it does not recognize XRP has a security. Financial authorities in the United Kingdom have the same position.
Bitcoin has successfully managed to flip its popularity among Japanese investors over the last two years and dethroning XRP by a large margin. Bitcoin now leads a 51.36% market share in Japan against XRP with 27.54%.
Huobi Token (HT) has managed to become the first global exchange token that is now approved in Japan. Meanwhile, the regulators in the country have decided to enhance protections for crypto investors.
The Japanese internal affairs and communications minister Sanae Takaichi has indicated that donations to politicians are legal and without limit.