Japan to reclassify crypto assets as financial products and lower taxes

Contributing sentiments towards policy:

54% : Per local media, Japan's Financial Services Agency wants to reclassify 105 cryptocurrencies under the same legal umbrella as stocks and bonds, which would bring them under investor protection rules and open the door to fairer taxation and stricter market conduct standards.
52% : Regulators in Japan are planning to classify cryptocurrencies as "financial products" under the Financial Instruments and Exchange Act and introduce a tax overhaul for the sector.
51% : Under the current framework, cryptocurrencies in Japan are taxed as "miscellaneous income," so high-income traders are often subject to tax rates of up to 55%, which makes it one of the most punitive regimes for crypto investors in the world.
50% : However, the FSA is pushing for a legislative proposal that would implement a flat 20% capital gains rate, which would bring cryptocurrencies in line with the tax treatment for traditional financial instruments.
47% : Japan is one of the earliest adopters of crypto regulation, but the country has maintained a rigid framework with high tax burdens and strict oversight measures that have at times stifled retail and institutional participation.

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