Japan's Big Crypto Makeover: What's Changing and Why It Matters

Japan is shaking things up in the crypto world. The Financial Services Agency (FSA) wants to reclassify digital currencies as "financial products. " This move aims to bring crypto under stricter rules, similar to stocks and bonds. Currently, crypto is treated differently. The FSA plans to make exchanges share more details about the 105 cryptocurrencies they list. This includes info on the technology behind them and how volatile they are. The goal is to protect investors by making the market more transparent. The FSA also wants to lower taxes on crypto gains. Right now, high earners can pay up to 55%. That's one of the highest rates globally. The new plan proposes a flat 20% tax rate, similar to stocks. This could make crypto investing more appealing. Insider trading is another big focus. The FSA wants to stop people from using non-public info to make profits. This includes tips about upcoming listings or financial troubles. The idea is to level the playing field for everyone. Banks might soon get into the crypto game. The FSA is considering letting banks hold digital assets like Bitcoin. Right now, banks stay away due to volatility concerns. But if the rules change, banks could offer crypto services directly to customers. These changes are part of a broader push to modernize Japan's financial system. The FSA plans to present these proposals in 2026. If approved, they could reshape Japan's crypto landscape.