Japanese Cryptocurrency Regulations 2025

The Japan Financial Services Agency (FSA) proposes to reduce the cryptocurrency tax from a progressive rate of up to 20% to a fixed rate of 20%, allowing investors to carry the losses forward for three years to reduce the burden on traders and promote market activity. The Japanese government plans to reclassify cryptocurrency assets as financial instruments by 2026 and implement stricter regulation, requiring token issuers to conduct mandatory disclosures and establish a clearer framework for cryptocurrency ETFs.