In Japan, the Financial Services Agency (FSA) proposed significant cryptocurrency regulatory reforms. These changes aim to reclassify crypto assets and reduce capital gains tax, potentially impacting the global digital asset market.
The FSA plans to reclassify cryptocurrencies as "financial instruments" by amending the Financial Instruments and Exchange Act, with a bill expected in parliament as early as 2026. The ruling Liberal Democratic Party (LDP) proposed reducing the capital gains tax on crypto assets to 20%.
These reforms could lead to the approval of crypto ETFs in Japan, influenced by the U.S. and other agencies. Bitcoin (BTC) is trading at $106,448, and Ethereum (ETH) is at $2,432.28.