According to a report from the Asahi newspaper published yesterday, Sunday, Japan intends to radically review the regulatory framework for digital assets, by subjecting digital currencies to rules on insider trading, in addition to reducing the tax pressure on profits. Currently, the Financial Services Authority (FSA) is developing measures covering 105 locally listed digital currencies, including Bitcoin (BTC) and Ethereum (ETH).
The proposed plan requires trading platforms to disclose basic information about each digital asset, including whether it has an issuing body, the technology adopted for its issuance, and the level of price fluctuation risks. The plan aims to include digital assets under the market conduct rules applied to securities markets, which will prevent individuals familiar with non-public information – whether within issuing bodies or trading platforms – from trading in significant events before their public disclosure, such as new listing activity, delistings and bankruptcy cases.
Japan’s Financial Services Agency (FSA) plans to reclassify 105 cryptoassets, including BTC and ETH, as “financial products” and push for a tax overhaul in fiscal 2026, reducing the current progressive tax rate on cryptocurrencies of up to 55% to a flat capital gains tax of 20%. The agency…
-Wu Blockchain (@WuBlockchain) November 16, 2025
Japan plans to impose a flat tax of 20% on gains in cryptocurrencies, just like on stock market transactions.
According to the report, the distribution scope will also expand, allowing banks and listing and custody service providers to sell digital currencies to clients through their services providing securities trading services, allowing small investors to access them through regulated financial market channels.
The tax treatment will also shift to a flat tax of 20% on gains made from trading digital assets, the same rate as that applicable to stock exchange transactions, instead of the current progressive rate of up to 55%, which could stimulate the restoration of local activity and reduce the temptation to trade via foreign trading platforms if a lower and simpler tax rate were applied. The report said the authority hopes to submit the bill during next year’s regular session of Parliament.
Financial Services Authority calls for clearer information to boost investor confidence
Local Japanese exchanges currently trade only 105 digital assets, representing a small portion of the thousands of digital assets in circulation worldwide, and the FSA’s efforts to improve disclosure indicate its preference to focus on quality and transparency rather than expanding the list of listed assets without adequate controls.
At the same time, another tightening of regulations in Tokyo appears to be in the works, as Bloomberg reported that the Japanese platform group is considering stricter enforcement of internal listing rules and may conduct new audits of companies with a strong interest in crypto investments.
Against this backdrop, 3 listed companies ended their plans to purchase digital assets after receiving regulatory warnings, and were informed that their fundraising could be limited if they focused their strategies on accumulating digital currency balances. For traders, the message is to provide clearer rules and data, equalize cryptocurrencies and stocks by taxing their gains at 20%, limit the misuse of inside information, and provide banking services to provide regulated access.
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