Particle.news
Download on the App Store

Japan Reclassifies Crypto as Financial Instruments, Sets 20% Tax on Approved Tokens

The move aims to draw mainstream investors by pairing clearer rules with lower taxes.

Overview

  • Japan’s Cabinet approved a bill that puts crypto under the Financial Instruments and Exchange Act, moving it out of payment-law oversight.
  • Profits from a vetted list of 105 tokens traded on licensed exchanges will be taxed at a flat 20% rate, while many other crypto gains still face rates up to 55%.
  • Trading on non‑public information in crypto is now illegal, with penalties of up to ¥10 million in fines and up to 10 years in prison.
  • Issuers must file yearly financial and operational reports, and regulators raised penalties for unregistered exchanges to curb unauthorized activity.
  • Banks and insurers may hold crypto and apply to run licensed exchanges, and major groups including Nomura and SBI plan new products as officials map a path to ETFs in later stages.