Japan’s Crypto Overhaul: ETFs, Lower Taxes, and a Push for Mainstream Adoption
Japan is set to redefine cryptocurrencies as regulated “financial products,” a pivotal change that could unlock ETFs and dramatically reduce tax burdens for investors.
The FSA’s proposal, unveiled this week, would place crypto under the FIEA—the same framework governing stocks and bonds—while cutting the top tax rate from 55% to a flat 20%.
This shift aligns with Prime Minister Kishida’s “New Capitalism” vision, positioning Japan as a hub for digital asset innovation. The FSA reports surging retail interest, with crypto holdings surpassing $34 billion and adoption now exceeding traditional FX and corporate bond investments.
If approved, the reforms could accelerate institutional participation, further legitimizing crypto in one of Asia’s most regulated markets.
