Japan’s Financial Services Agency (FSA) is in closed-door discussions regarding potential revisions to cryptocurrency regulations, including classifying cryptos as securities. This move could pave the way for spot crypto ETFs in Japan. The agency is expected to announce a policy direction by June, followed by seeking opinions from the Financial System Council in the fall. Legal amendments could be submitted in 2026.
Here’s a breakdown of the potential changes:
- Classification as Securities: The FSA is considering classifying cryptocurrencies as financial products, potentially applying existing securities laws or introducing new rules. This could lead to stricter regulations for retail investors.
- Tax Reform: The FSA is proposing to slash crypto taxes from 55% to 20%, treating crypto like traditional securities. Government and Parliament approval are needed before it becomes law.
- Crypto Exchange Apps: The FSA has requested Apple and Google to remove non-compliant crypto exchange apps from their app stores to enforce compliance.
- Bitcoin ETF: The agency may lift the ban on Bitcoin ETFs. In October 2024, a domestic study group recommended prioritizing Bitcoin and Ethereum and advancing regulatory frameworks for crypto ETFs.
If these changes are approved, Japan could become a crypto-friendly destination, attracting more investors and businesses.
