Japan Proposes 20% Crypto Tax and Bitcoin ETF Approval
The Financial Services Agency (FSA) of Japan has proposed significant crypto reforms to enhance the local industry. Key points include:
- A flat 20% tax on crypto gains, replacing the current range of 15% to 55%
- Anticipation of Bitcoin ETF approvals, allowing regulated exposure to cryptocurrencies
- Metaplanet's holdings have increased to 11,111 BTC, valued at $117 million
Tax Reforms Needed
The FSA aims to align crypto taxes with stock market taxes by proposing a flat rate. This will be discussed at the Financial System Council meeting on June 25.
Current regulations classify crypto assets as digital payment methods under the Payment Services Act. The proposed reclassification under the Financial Instruments and Exchange Act would treat them as financial products, enhancing investor protections and facilitating Bitcoin ETF listings.
Growing Crypto Ownership
Crypto ownership in Japan now surpasses traditional financial products among retail investors. As of January 2025, over 12 million active crypto accounts held assets worth more than 5 trillion Japanese yen (approximately $34 billion).
Additionally, partnerships like that of Sumitomo Mitsui Financial Group and others aim to advance stablecoin commercialization in Japan.