Japan’s Financial Services Agency has drafted a landmark proposal to reclassify cryptocurrencies as official “financial products,” subjecting them to the Financial Instruments and Exchange Act (FIEA).
The change would not only pave the way for crypto ETFs but also overhaul the tax regime, replacing progressive rates (up to 55%) with a uniform 20% levy—mirroring stock taxation.
The initiative reflects Japan’s broader economic strategy, “New Capitalism,” which emphasizes investment-led growth. Government data shows crypto’s rising dominance, with 12 million active accounts and holdings eclipsing traditional instruments like FX among retail investors.
The FSA emphasized that the reforms aim to balance innovation with stability, potentially reshaping Japan’s role in the global digital asset landscape.
