Japan is preparing to overhaul its crypto regulations, aiming to reclassify digital assets as financial products under the Financial Instruments and Exchange Act (FIEA). The proposed reform, announced by the Financial Services Agency (FSA) on June 24, would lower crypto taxes from a progressive rate of up to 55% to a flat 20%—aligning them with stock investments.
If approved, the move could also remove barriers to launching spot Bitcoin ETFs in Japan while reinforcing investor protections through market conduct rules. The proposal will be discussed at the Financial Services Council meeting on June 25.
This initiative is part of Japan’s broader “New Capitalism” strategy to boost economic growth through innovation. The government views Web3, NFTs, and decentralized technologies as tools for productivity, regional development, and global competitiveness.
Japan’s policy shift follows similar pro-crypto moves in the U.S. and Asia and reflects growing momentum. A formal bill is expected by mid-2025, with potential passage in 2026.
Industry leaders have welcomed the changes, saying Japan is finally recognizing crypto as a legitimate and strategic asset class.
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