The post Japan Considers Tax Cuts and Bitcoin Spot ETF Approval in Major Crypto Reform appeared on BitcoinEthereumNews.com.

Japan’s Financial Services Agency is set to cut crypto taxes from 55% to 20% and may approve Bitcoin spot ETFs, reshaping its investment landscape. The regulatory overhaul aligns Japan with global trends, potentially attracting institutional investors and strengthening its role in the digital asset market. Japan is gearing up for a major shift in its crypto regulations, with its Financial Services Agency (FSA) eyeing tax cuts and the approval of Bitcoin spot ETFs. The strategic move could redefine the country’s digital asset landscape, making it more appealing for investors while bringing its policies closer to global trends. The FSA has launched closed-door meetings with financial experts to reassess existing virtual currency regulations. According to Nikkei, the agency is working on policy reforms that are set to be announced by June 2025, with legislative amendments expected during the 2026 regular Diet session. These changes are designed to strengthen investor protection while revitalizing the market. One of the most significant proposals includes slashing the current crypto tax rate from a staggering 55% to just 20%, aligning it with Japan’s financial income tax rate. This reduction could ease the burden on investors and encourage broader participation in the crypto space. Bitcoin ETF Ban May Be Lifted In addition to tax relief, the FSA is considering lifting the ban on Bitcoin spot ETFs. The proposal follows international developments, such as the U.S. Securities and Exchange Commission (SEC) approving Bitcoin and Ethereum spot ETFs. If Japan moves forward with this change, it could provide institutional investors with new avenues to enter the market. A similar idea was floated last October when a Japanese study group recommended focusing on Bitcoin and Ethereum for crypto ETFs while refining regulations and setting up separate tax structures for ETFs and spot trades. However, it’s still unclear whether Japan’s potential…

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Filed under: News - @ February 11, 2025 10:23 am