Japan Proposes Classifying Crypto as Financial Products

Japan is rolling out the red carpet for crypto. In a major policy shift, regulators have proposed treating digital assets like stocks—clearing the path for ETFs and slashing taxes from a punishing 55% to a flat 20%.

The FSA’s plan, part of Japan’s “New Capitalism” agenda, would classify crypto as regulated “financial products,” putting them under the same rules as traditional securities.

With over $34 billion in crypto holdings and retail adoption outpacing FX trading, the move could supercharge market growth.

Analysts say the reforms, if passed, would make Japan one of the most crypto-friendly advanced economies—blending innovation with strong oversight.