Japan is reportedly set to review its cryptocurrency regulations, potentially reducing taxes on digital assets. The Financial Services Agency (FSA) plans to assess whether current crypto regulations under the payments act provide sufficient investor protection. The review may lead to reclassifying crypto as financial instruments under Japan’s investment law, which could enhance safeguards and bring “dramatic changes,” according to Bitbank analyst Yuya Hasegawa. Industry leaders hope to reduce the tax on crypto gains from as high as 55% to 20%, aligning it with other assets like stocks. Japan’s strict regulations reflect previous scandals, including the Mt. Gox hack and a recent breach at DMM Bitcoin. However, trading volumes at local exchanges are recovering, with monthly volume nearing $10 billion in 2024. Businesses like Sony and Mitsubishi UFJ Financial Group are also exploring blockchain and stablecoin opportunities.

Source : Bitcoin News - Oct 1, 2024