The post Japan’s FSA Pushes Bold Crypto Tax Reform, Boosting Prospects for ETF Listings appeared on BitcoinEthereumNews.com.

Japan’s FSA has made moves to reshape taxation rules and reclassify digital assets in the country. This could potentially open the door for cryptocurrency exchange-traded funds (ETFs).  Japan Seeks Crypto Tax Overhaul Nikkei reports that Japan’s Financial Services Agency (FSA) plans to incorporate the expansion of the Small Investment Tax Exemption System (NISA) into its fiscal 2026 tax reform proposal. The plan is part of Tokyo’s broader vision of becoming an “asset management nation.” This would allow its financial markets to attract greater participation from corporations.  Currently, crypto gains in Japan are treated as “miscellaneous income” under the tax code. This is subject to progressive rates that can reach as high as 55% when local levies are included. The system has long been criticized as punitive, especially when compared with equities and bonds, which are taxed at a flat 20%. The FSA’s proposal would change that by moving crypto earnings into the same 20% bracket as stocks. This also allows investors to carry forward losses for up to three years. Officials argue that this parity will reduce financial strain on traders. It could also stimulate greater participation from both individuals and institutions.  Japan’s troubled history with cryptocurrency has shaped this reform package. The demise of Tokyo-based Mt. Gox in 2014 rocked trust in digital assets. Since then, Japan has put in place some of the most stringent cryptocurrency laws in the world, with a focus on protecting investors. Additionally, back in May, Japan faced economic challenges tied to the crypto market crash. This move could also help in easing future risks. Proposed Tax Reforms Set Stage for Crypto ETFs These reforms aim to classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act (FIEA). This change would put digital assets under the same rules that govern stocks and…

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Filed under: News - @ August 23, 2025 9:26 am