New FSA rules for cryptocurrencies in Japan

Cryptocurrencies to become financial products

The Financial Services Agency (FSA) of Japan has announced one of the most significant reform projects for the country’s crypto industry. According to the initiative, digital assets will be officially classified as financial products. This will be a major step toward integrating cryptocurrencies into the traditional financial system. The FSA plans to submit the bill to parliament in 2026, after which the regulator hopes to build a more transparent and predictable market model.

Tax Reform: 20% instead of 55%

One of the key innovations will be a change to the tax system for cryptocurrency income. Currently, capital gains are taxed at a rate of up to 55%, considered one of the highest in the world. The FSA proposes reducing this rate to a flat 20%—the same as for traditional financial instruments. This reform will create a more attractive environment for investors and could strengthen Japan’s position as a center of the global crypto economy.

Data Disclosure and Liability of Cryptocurrency Exchanges

To increase market transparency, the FSA intends to require crypto exchanges to disclose detailed information about each digital asset traded on their platform. Exchanges will be required to disclose:

• the existence and characteristics of the issuer,
• the blockchain technology used,
• the token’s volatility profile.

The agency emphasizes that these requirements are necessary to enable investors to make informed decisions. Platforms will be required to store the collected data and be responsible for keeping it up-to-date.

Ban on Insider Trading in Cryptocurrencies

Another important part of the reform will be a ban on insider trading. Individuals with access to confidential information about listings, delistings, or issuer financial difficulties will be prohibited from trading such tokens. Similar regulations have long been in force in the securities market and will now be extended to digital assets.

Possibility of Bank Participation in the Crypto Market

The FSA is also considering easing restrictions for banks. Currently, they are prohibited from owning cryptocurrencies due to their high volatility. However, the regulator plans to discuss allowing banks to purchase, store, and even trade digital assets as licensed crypto exchanges.
Additional interest in the topic was sparked by a statement by Bank of Japan Deputy Governor Ryozo Himino, who noted the potential of stablecoins in international payments.