Japan Mulls Crypto Reforms, Allowing Bank Distribution And Cutting Tax Rates: Report

Japan is reportedly contemplating new regulations for cryptocurrencies, wherein the proposed rules include the classification of cryptocurrencies as financial products and new taxation norms.

Insider Trading Rules For Cryptocurrencies

The Japanese Financial Services Agency (FSA) is considering a new set of regulations for cryptocurrencies. If implemented, these regulations would categorize cryptocurrencies as financial products, bringing them under the purview of insider trading rules, reported the Asahi newspaper on Sunday.

The rules would cover 105 cryptocurrencies traded in Japan, including major tokens like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). Crypto exchanges would need to provide disclosures outlining risks such as price volatility.

It is noteworthy that under the proposed rules, banks and insurance companies could offer cryptocurrencies to their depositors and policyholders through their securities subsidiaries.

The FSA aims to introduce the necessary legislation during the next year’s ordinary parliament session, as per the publication.

See Also: JPMorgan Forecasts Bitcoin Bottom, Anticipates $28.3 Trillion Challenge To Gold By 2026

Japan Signals Bigger Crypto Push

This potential shift in Japan’s cryptocurrency regulations comes on the heels of other significant developments in the country’s digital finance sector. In October, Japan launched JPYC, the world’s first yen-pegged stablecoin, marking a notable step in a country still largely reliant on cash and credit card payments.

Furthermore, in August, Japan’s market regulator was reportedly preparing to propose a revision to the nation’s tax code, potentially opening the door for domestic cryptocurrency exchange-traded funds. The Financial Services Agency was planning to request a review of the tax treatment of cryptocurrencies for the 2026 fiscal year.

Price Action: At the time of writing, BTC was exchanging hands at $95,674.32, up 1.58% in the last 24 hours, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.