Crypto faces Wall Street–style regulation in Japan

Japan’s Financial Services Agency has finalized a major regulatory update that will reclassify 105 cryptocurrencies — including Bitcoin and Ethereum — as financial products. Under the new rules, exchanges must disclose detailed information about each listed asset, such as issuance model, blockchain structure, and volatility risk.

Source The Block

The reform also includes enhanced oversight on insider trading within the crypto sector. Issuers and exchange executives will face stricter scrutiny regarding the use of non-public information, including upcoming listing schedules and trading-related decisions.

Authorities aim to significantly reduce the tax burden on crypto investors by lowering the current maximum 55% tax rate to 20%, aligning it with Japan’s stock investment taxation. The proposal is expected to be reviewed and potentially approved in the next fiscal year.