On February 10, the Japanese Financial Services Agency (FSA) has begun considering positioning crypto assets (virtual currencies) as financial products similar to securities, with the aim of requiring companies to disclose more detailed information to protect investors. Currently, the FSA is holding closed-door study meetings with experts to review whether the current regulation of virtual currencies is sufficient.
The Japanese FSA has begun designing a system that will be announced in June this year with policy reforms, and will be discussed in the Financial System Council in the fall of this year, with the law to be amended in the ordinary Diet session in 2026.
Bloomberg recently reported that "the expert research group set up by the Japanese FSA generally agrees that cryptocurrencies are beginning to be positioned as investment targets," which seems to be a response to the US SEC's approval of Bitcoin spot ETFs and Ethereum spot ETFs, as well as the Trump administration's support for the crypto industry.
The new system also aims to lift the ban on "Bitcoin spot ETFs" and may also lower the current tax rate of up to 55% to 20%, the same as the financial income tax rate, in order to both protect investors and revitalize the market.
