Japan Plans Regulatory Overhaul for Cryptoassets Including Insider Trading Rules and Tax Cuts
Japan's Financial Services Agency is planning to reclassify 105 domestically listed cryptoassets as financial products.
Under the new regulations, insider trading laws would be applied to cryptocurrencies, prohibiting trading based on non-public information related to events such as listings, delistings, or bankruptcies.
Exchanges will be required to disclose core facts for each asset, including issuer status, technology, and price-risk details.
Tax reforms scheduled for fiscal year 2026 aim to establish a flat capital gains tax rate of 20% on crypto gains, a significant reduction from the current maximum rate of 55%.
Additionally, banks and insurers will be allowed to sell cryptocurrencies to customers through their securities subsidiaries, thereby expanding regulated distribution channels.
Legislation encompassing these measures is expected to be submitted in the next ordinary parliamentary session.
These disclosure and market-conduct measures are intended to boost investor confidence and bring crypto regulations closer in line with those governing equity trading.
