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The Japanese regulatory agency is considering reclassifying 105 cryptocurrencies such as BTC and ETH as "financial products," potentially reducing the tax rate to 20%.

3 hours ago

On November 16th, the Japanese Financial Services Agency (FSA) intends to reclassify 105 cryptocurrencies such as Bitcoin and Ethereum as financial products and bring them within the regulatory scope of the Financial Instruments and Exchange Act. Presently, Japanese residents are mandated to declare cryptocurrency gains as "miscellaneous income," with the highest tax rate reaching 55%. After the reclassification, gains from trading these 105 tokens will be taxed as capital gains, and the tax rate will be lowered to a uniform 20%, which is equivalent to the stock trading tax rate. It is reported that the proposal is expected to be included in the budget for the early 2026 period.
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