Japan's FSA: Cryptocurrency as Financial Product, New Era for Bitcoin

Generated by AI AgentCoin World
Monday, Feb 10, 2025 4:16 am ET1min read

Japan's Financial Services Agency (FSA) has initiated a significant move to classify cryptocurrency as a financial product, marking a new era for Bitcoin and market regulation. The agency is exploring the possibility of treating cryptocurrency like securities, aiming to enhance transparency and protect investor interests.

The FSA is currently engaging in closed-door discussions with industry experts to evaluate the adequacy of existing regulations regarding cryptocurrency. The agency is actively shaping new guidelines, with an official announcement on reform policies expected in June. Discussions within the Financial System Council are set to continue into autumn, paving the way for potential legislative changes in the regular assembly session of 2026.

The proposed regulatory framework also targets the repeal of the ban on Bitcoin spot ETFs and seeks to significantly lower the tax burden on cryptocurrency earnings, from a staggering 55% to a competitive 20%. These measures are designed to bolster market activity while ensuring investor protection remains a priority.

The FSA's expert group is increasingly viewing cryptocurrency as a viable investment vehicle, influenced by recent U.S. SEC decisions regarding Bitcoin and Ethereum spot ETFs. The proposed regulatory framework aims to enhance transparency and protect investors, while also fostering market growth and innovation.