Japan Proposes 20% Tax, Reclassifies 105 Cryptos as Financial Products
Japan’s financial regulator has put forward a proposal to reclassify 105 digital assets as financial products and to apply a 20% tax treatment, explicitly naming bitcoin and ether among the affected tokens. The package also includes measures designed to prevent insider trading in crypto markets, signaling a shift toward treating major tokens more like traditional securities. The change is not final and will require legislative or administrative approval before taking effect.
Market reaction is broadly positive: lower, clearer taxes and anti‑insider rules could reduce uncertainty for retail traders and institutional participants, potentially boosting liquidity and adoption. Exchanges and custodians will likely need to update compliance systems and reporting, while policymakers balance investor protection with market growth. Observers will watch the approval process and implementation timeline for concrete effects on trading behavior and tax filings.