Japan's Financial Services Agency (FSA) is preparing to overhaul the country's crypto regulatory framework and move to categorize digital assets as “financial products” under the Financial Instruments and Exchange Act.
According to a Sunday report from Asahi Shinmun, the plan would introduce mandatory disclosures for 105 cryptocurrencies listed on domestic exchanges, including Bitcoin (BTC) and Ether (ETH), and subject them to insider trading regulations for the primary time.
If passed, exchanges could be required to reveal detailed details about each of the 105 tokens they list, including whether the asset has an identifiable issuer, its underlying blockchain technology and its volatility profile, the report said.
The FSA reportedly plans to submit the brand new crypto-related law proposal to Japan's key parliamentary session in 2026 for approval.
Japan is aiming for a flat 20% tax on crypto profits
The FSA can be pushing for tax reform. Japan currently taxes crypto income as “other income,” meaning high-earning traders face rates of as much as 55%, one in every of the very best regimes on the planet.
The authority now wants profits from the 105 approved cryptocurrencies to be taxed similarly to stocks, with a flat capital gains rate of 20%.
Another notable a part of the proposal is the try and curb insider trading within the local crypto market. Under the bill, individuals or entities with access to nonpublic information, akin to upcoming listings, delisting plans, or an issuer's financial distress, could be prohibited from buying or selling affected tokens.
Japan is considering allowing banks to carry Bitcoin
Last month it was reported that the FSA was considering allowing banks to accumulate and hold cryptocurrencies akin to Bitcoin for investment purposes. Under current rules, banks are effectively banned from holding digital assets because of volatility concerns, however the FSA plans to revisit the restrictions at an upcoming meeting of the Financial Services Council.
The regulator can be reportedly considering whether banking groups needs to be allowed to register as licensed cryptocurrency exchanges in order that they’ll offer trading and custody services on to their customers.
