The Japan Financial Services Agency plans to treat cryptocurrencies as financial products similar to securities, and implement tax reductions and approve ETFs

The Japan Financial Services Agency has begun considering positioning crypto assets (virtual currencies) as financial products similar to securities, with the aim of requiring companies to disclose more detailed information to protect investors. Currently, the agency is holding closed-door research meetings with experts to review whether current regulation on virtual currencies is sufficient.

It is reported that the Japan Financial Services Agency has started designing a system and will announce policy reforms in June this year, and after discussions at the Financial System Council in autumn this year, it will amend the law at the regular Diet session in 2026.

Bloomberg recently reported that "the expert research group set up by the Japan Financial Services Agency generally agrees that cryptocurrencies are beginning to be positioned as investment targets", which seems to be a response to actions such as US SEC's approval of Bitcoin spot ETFs and Ethereum spot ETFs, and Trump administration's support for cryptocurrency industry.

The new system also aims at lifting ban on "Bitcoin Spot ETF" and may reduce current tax rate of up to 55% down to 20%, same as financial income tax rate, aiming both protecting investors and revitalizing market. A key question raised for future consideration is whether all crypto assets are targeted or only those approved as ETFs in United States like Bitcoin and Ethereum. (Nikkei News)