Japan considers new cyptocurrency rules, Asahi newspaper reports
Japan’s Financial Services Agency (FSA) is considering a package of reforms that would treat cryptoassets as financial products, bringing them under insider trading rules, and cutting the tax on retail trading profits to 20%.
The measures would also permit bank-group and insurer-group securities subsidiaries to sell crypto to customers, subject to enhanced risk disclosures, according to local media reports and prior FSA briefings.
What the proposal covers
Under the plan, 105 cryptoassets available domestically including bitcoin and ethereum would be classified as financial products, triggering disclosure requirements similar to those in Japan’s securities markets. Exchanges would need to warn investors about price volatility and other material risks, and trading would be subject to insider trading restrictions.
Tax change at the center: Japan cryptocurrency 20% tax
Profits from individual crypto transactions are currently treated as “miscellaneous income,” exposing top-bracket taxpayers to rates of up to 55%. Policymakers are weighing a shift to separate taxation at a flat 20%, aligning crypto with stocks and other financial instruments to simplify compliance and reduce arbitrage.
Distribution: banks and insurers via securities arms
The FSA is also studying whether bank and insurance groups could offer crypto through their securities subsidiaries a move intended to widen access while keeping sales within regulated entities familiar with product-suitability rules and disclosure norms.
Timing and next steps
According to media reports, the agency aims to submit necessary changes during the next ordinary session of the Diet. Market participants should watch for draft language that specifies disclosure templates, scope of insider rules, and transitional arrangements for exchanges.
Context & Analysis
Japan has trailed only a handful of G7 peers in codifying market-abuse rules for crypto. Earlier reporting indicated plans to amend the Financial Instruments and Exchange Act to give crypto financial-product status, which would naturally extend insider-trading prohibitions and align oversight with securities markets. The current push builds on that trajectory and seeks tax parity to encourage on-shore activity rather than capital flight.
Conclusion
Japan is set to implement one of its most significant cryptocurrency overhauls to date. The proposed package aims to tighten conduct rules for investors and exchanges, ensuring clearer standards and greater market integrity. At the same time, it standardizes the tax treatment for crypto gains at 20%, simplifying compliance for individuals and institutions alike.
Market participants, including investors, exchanges, and financial groups, will need to adapt to these changes. This includes preparing new disclosure templates, updating compliance systems, and exploring potential distribution opportunities under the revised regulatory framework. The move signals Japan’s commitment to a more structured crypto market.
FAQs
Q : What is being proposed?
A : Classifying crypto as financial products, applying insider trading rules, enhancing disclosures, and moving to a flat 20% tax.
Q : Which assets are covered?
A : Reports cite 105 cryptoassets listed in Japan, including bitcoin and ethereum.
Q : Will banks sell crypto?
A : Potentially via their securities subsidiaries, subject to risk disclosures and licensing.
Q : Why change the tax?
A : To align crypto with stock gains and reduce the current burden that can reach 55% for top earners.
Q : When could changes happen?
A: The FSA may submit legislation in the next ordinary Diet session; timing depends on lawmakers.
Q : Does this affect corporate holders?
A : Details are pending; the initial focus is retail trading profits and exchange disclosures. (Await final bill text.)
Q : Does the plan include the exact phrase “Japan cryptocurrency 20% tax”?
A : That phrase describes the proposed flat rate; specifics will be confirmed in the legislative text.
Facts
Event:
FSA considers reclassifying crypto as financial products; proposes 20% tax and expanded distribution via securities subsidiaries.Date/Time
2025-11-17T07:16:00+05:00Entities
Financial Services Agency (Japan); National Diet; Asahi Shimbun; Reuters; bitcoin (BTC); ethereum (ETH)Figures
105 tokens; tax shift from up to 55% → 20% (individual profits)Quotes:
“The proposed rules would apply to 105 types of cryptocurrencies… [and] reduce the tax rate on profits to 20%.” Reuters summary of Asahi report. ReutersSources:
Reuters Japan considers new cryptocurrency rules, Asahi reports; Asahi Shimbun