Japan's Financial Services Agency aims to revise cryptocurrency regulation, potentially leading to reduced taxes and sector support.
New Policy from Japan's Financial Services Agency
On June 24, Japan’s Financial Services Agency unveiled a new policy suggesting a potential transformation in cryptocurrency regulation. The document titled 'Review of the Systems Surrounding Crypto Assets' indicated the formation of a working group to explore shifting cryptocurrency regulation from the current Payment Services Act to the more stringent Financial Instruments and Exchange Act.
Potential Changes to Taxation
If approved, capital gains tax on cryptocurrencies could be set at around 20%, significantly easing the tax burden compared to the current rates which can reach up to 55%.
Strategy for Web3 Development and Market Impact
This change is part of Japan's broader strategy to strengthen its status as an investment nation and promote growth in the Web3 and crypto sectors. As outlined in the government's revised 2025 'New Capitalism Grand Design and Implementation Plan,' responsible development of Web3 can tackle societal challenges, increase productivity, and unlock global opportunities for Japanese cultural and regional assets.
Potential regulatory changes in Japan regarding cryptocurrencies could significantly impact the market and encourage the development of the Web3 sector.
