Japan plans extensive crypto reform with new tax rules and access to ETFs

Japan prepares a fundamental redesign of his regulations for cryptocurrencies. Officials are currently working on a proposal that is to re -classify digital assets and simplify their tax treatment.
Die Initiativewhich is promoted by the Financial Supervisory Authority (FSA), could pave the way for stock exchange-traded funds (ETFs) based on cryptocurrencies and reduce the tax burden for crypto investors.
The throw of reform stipulates that cryptocurrencies according to the Japanese Financial instrument and stock market law should be treated similar to traditional securities. This legal adaptation would mean a significant change in the country's approach to digital assets and possibly enable crypto system products that may be regulated for the first time.
An essential part of the plan is the replacement of the current progressive control model, in which crypto profits are taxed at up to 55%, through a standardized capital gains tax of 20%, which corresponds to the taxation of stock investments. If this is implemented, this could encourage more private investors and institutional investors to participate in the growing crypto market of Japan.
The proposal comes in the middle of a rapid distribution of digital assets in Germany. At the beginning of 2025, over 12 million Japanese users had active crypto accounts, and the assets on domestic platforms were over 5 trillions of yen (around $ 34 billion). The FSA found that the possession of cryptocurrencies in Japan has now overtaken some conventional asset classes, especially among younger, technology -savvy investors.
At the same time, the global expansion of institutional interest in cryptocurrencies-especially due to Bitcoin ETFs listed in the USA-has not been unnoticed in Japan. In view of the now more than a thousand participating institutions worldwide, regulatory authorities want to bring similar innovations to the Japanese financial landscape.
The country also tests stable coins. A partnership between large financial institutions such as Sumitomo Mitsui and crypto companies such as AVA Labs and Fireblocks examines the output of stablecoins that are coupled to the yen and the US dollar. These coins could be used to handle tokenized assets that range from shares to real estate.