Japan’s Financial Services Agency (FSA) is preparing to overhaul the country’s cryptocurrency regulatory framework, moving to classify digital assets as “financial products” under the Financial Instruments and Exchange Act.
The plan will introduce mandatory disclosures for 105 cryptocurrencies listed on local exchanges, including Bitcoin (Bitcoin) and ether (Ethereum), subjecting it to insider trading systems for the first time, According to For Sunday’s report from Asahi Shinmon.
If enacted, exchanges would be required to disclose detailed information about each of the 105 tokens they list, including whether the asset has a specific issuer, the blockchain technology that supports it and its volatility profile, according to the report.
The Financial Services Authority reportedly plans to submit the proposal for the new law on cryptocurrencies to Japan’s main parliamentary meeting in 2026 for approval.
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Japan is looking to impose a flat 20% tax on cryptocurrency gains
The FSA is also pushing for tax reform. Japan currently taxes cryptocurrency earnings as “miscellaneous income,” meaning high-income traders can face rates of up to 55%, one of the highest in the world.
The agency now wants gains on 105 approved cryptocurrencies to be taxed similarly to stocks, at a flat capital gains rate of 20%.
Another notable part of the proposal is an attempt to limit insider trading in the local cryptocurrency market. Under the bill, individuals or entities with access to non-public information, such as upcoming listings, delisting plans, or financial distress of the issuer, would be prohibited from buying or selling the affected tokens.
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Japan is considering allowing banks to hold Bitcoin
Last month, it was reported that the Free Syrian Army was considering this Allowing banks to acquire and hold cryptocurrencies Such as Bitcoin for investment purposes. Under current rules, banks are effectively banned from holding digital assets due to volatility concerns, but the FSA plans to reconsider the restrictions at the next meeting of the Financial Services Board.
The regulator is also reportedly exploring whether banking groups should be allowed to register as licensed cryptocurrency exchanges, enabling them to offer trading and custody services directly to customers.
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