Japan's Financial Services Agency Considers Including Crypto Assets under the Financial Instruments and Exchange Act, Paving the Way for Separate Taxation and Potential Advancement of Bitcoin ETFs

According to a report by a certain exchange, Jinse Finance reported that Japan's Financial Services Agency released a document today announcing that it will seriously consider shifting the regulation of crypto assets from the Payment Services Act to the framework of the Financial Instruments and Exchange Act. If this transition proceeds smoothly, crypto assets will be officially classified as financial products, and the relevant tax regime is expected to shift from a comprehensive tax rate of up to 55% to a separate tax rate of around 20%. Additionally, the ban on Bitcoin ETFs may be lifted, improving the investment environment for investors.