Japan’s Financial Services Agency (FSA) is drafting a significant reset of its cryptocurrency regulations, according to the Asahi newspaper. The proposed changes aim to bring digital assets under stricter oversight, treat them as financial products, and significantly reduce the tax burden on profits.
Key measures include:
- Applying Insider Trading Rules: Market conduct rules, similar to those for equity traders, will be introduced. People with non-public information about issuers or exchanges will be prohibited from trading based on material events (like listings or bankruptcies) before they are publicly disclosed.
- Enhanced Disclosure Requirements: Exchanges dealing with the 105 domestically listed cryptocurrencies (including Bitcoin and Ethereum) must disclose core facts for each asset, such as the issuer, underlying technology, and price volatility risks. The FSA is prioritizing clear information to strengthen investor confidence.
- Lowering the Tax Rate: The tax treatment for crypto gains will shift from a top rate of 55% to a flat 20%, aligning it with the rate for stock trading. This move is intended to draw activity back to domestic platforms.
- Broadening Distribution: Banks and insurers will be allowed to sell cryptocurrencies to customers through their securities subsidiaries, providing retail investors with regulated access to digital assets.
The FSA plans to submit the legislation during next year’s ordinary parliamentary session. Additionally, the Japan Exchange Group is reportedly considering stricter rules for backdoor listings and may require fresh audits for firms heavily shifting into crypto, further signaling a tightening of market supervision.
November 2025, Cryptoniteuae
📧 The Gulf reads Cryptonite first
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