Japan to classify 105 cryptocurrencies as financial products, pursue tax cut

Japan's Financial Services Agency (FSA) is pursuing a plan to reclassify 105 cryptocurrencies, including BTC and ETH, as financial products and subsequently lower the crypto income tax rate from a maximum of 55% to 20%, The Block reported. Under the new framework, exchanges listing these assets will be required to disclose key information, such as the presence of an issuer, the underlying blockchain technology, and price volatility. The FSA also intends to introduce measures to prevent insider trading, prohibiting executives at issuers or exchanges from trading on non-public information. These changes are slated to be submitted as an amendment to financial laws during the 2026 regular session of the Diet. The report added that authorities will use this initiative to accelerate a broader reform of the cryptocurrency tax system, including the significant tax reduction.