Japan classifies cryptocurrencies as financial products! Paving the way for crypto ETFs, crypto tax reduced to 20%

To promote the "New Capitalism" policy, the Japanese government plans to redefine crypto currencies as financial products, not only paving the way for crypto ETFs but also intending to reduce the personal crypto asset capital gains tax rate from 55% to 20%. According to statistics from the Japan Financial Services Agency (FSA), over 12 million people in Japan have opened crypto accounts, with the proportion of investment in crypto assets already exceeding foreign exchange and bonds, indicating a rapidly increasing demand for crypto market-related assets.

Classify Two Types of Crypto Assets Based on "Fundraising" Function

According to the Japan Financial Services Agency's (FSA) official document on 6/24, this proposal will classify crypto assets based on their "fundraising" function. Such as "business type" crypto assets used for fundraising or project development, such as ICO or token sales. Such types will be required to provide accurate information disclosure by the issuer.

The other type is "non-fundraising", such as BTC, ETH, or meme coins, where FSA considers having the "crypto exchange" provide information disclosure. Regarding Non-Fungible Tokens, due to their diverse nature, they are temporarily not being processed as financial products.

Develop Regulatory Framework from Compliance, Market, and Insider Trading Perspectives

FSA also proposed three directions for crypto regulation. First, any promotional activities under the "investment name", such as hosting lectures or online marketing, will be included in the regulatory scope to prevent misleading and fraudulent behaviors.

In terms of crypto exchange management, FSA believes it is necessary to establish basic institutional and system management mechanisms, including transaction process regulations and system security requirements. However, since the price formation mechanism in the current crypto market is not yet mature, FSA stated that they will not regulate as strictly as stock exchanges at this stage, but adopt a relatively relaxed and flexible management approach.

Additionally, FSA stated that they will further study how to prevent insider trading and information abuse, and reference international practices, including the US information disclosure model and the European trading prohibition model, as a reference for regulatory design.

Define Crypto Assets as "Commodities" and Include in FIEA, Reduce Tax Rate to 20%

FSA also revealed that they are currently planning to include crypto assets within the Financial Instruments and Exchange Act (FIEA) and define them as "financial products". At the same time, FSA is considering changing the 55% crypto currency capital gains tax to a 20% tax rate, similar to stocks and funds.

This policy has been included in the "New Capitalism Implementation Plan" approved by the cabinet on 6/13 and is being studied by FSA.

1200 Institutions Rush into BTC ETF, Japan Wants to Catch Up

FSA pointed out that the purpose of reclassifying crypto assets this time is to pave the way for Japan to launch a crypto currency ETF, targeting the currently listed BTC spot ETF in the United States.

FSA also cited the latest data showing that over 1200 financial institutions currently hold US-listed BTC ETFs, including US retirement funds and major investment institutions like Goldman Sachs. This indicates that global funds are accelerating towards the crypto market, and Japan does not want to be left behind.

Japanese Crypto Accounts Exceed 12 Million, Surpassing Foreign Exchange and Bond Participants

According to FSA statistics as of January this year, over 12 million active crypto accounts have been opened in Japan, with total user assets around $34 billion.

This number is not only continuously growing, but in some young, tech-savvy demographic groups, investment in crypto assets has even surpassed foreign exchange and bonds, reflecting an increasingly growing public interest in crypto assets.

SMBC Collaborates with Ava Labs to Develop Stablecoins for Real Estate and Bond Settlement

Besides tax and ETF policies, Japan's attitude towards stablecoins is gradually becoming more open. In April this year, Sumitomo Mitsui Financial Group (SMBC) announced signing a memorandum of cooperation with Ava Labs, Fireblocks, and TIS Inc., preparing to promote stablecoin commercialization in Japan.

The goal is to issue stablecoins pegged to the US dollar and Japanese yen, and explore settlement applications for tokenized assets such as stocks, bonds, and real estate.

Japan Issues First Stablecoin License, SBI Prepares to Support USDC

In terms of stablecoin policy, Japan took a key step in March when FSA issued the first stablecoin operating license to SBI VC Trade, a crypto exchange under the SBI Group. SBI stated that it will prioritize supporting mainstream international stablecoin USDC-related business, preparing for future cross-border settlement and financial innovation.

Trump to Issue Executive Order Stopping Chokepoint 2.0

According to the Wall Street Journal, the Trump administration is considering an executive order to prevent banks from cutting financial services to certain "politically unpopular" industries, including new tech startups and crypto businesses.

This move is seen as addressing the "Operation Chokepoint 2.0", where banks have allegedly collectively blocked financial services for crypto currencies, tech startups, and even some weapons and fossil fuel industries.

Three Banks Suspected of Supporting Crypto Industry, Subsequently Collapsed

The US banking sector experienced a major shock in 2023. Silicon Valley Bank (SVB) suddenly collapsed, Silvergate announced liquidation, and Signature Bank was subsequently ordered to close by New York financial institutions.

Since these three banks were closely related to the crypto industry, some experts suspect this was a suppression action led by the Biden administration. At the White House Crypto Summit on 3/7, Trump publicly stated he would end "Operation Chokepoint 2.0".

During Biden's Term, at Least 30 Businesses Denied Banking Services

According to Elon Musk's previous post on X, during Biden's term, at least 30 crypto and tech businesses were denied financial services by banks, including account opening and fund transfers.

These affected businesses were not given any reasons, and some suspect they were silently blocked due to their industry characteristics or political leanings not meeting the banks' expectations.

(a16z Founder: Silicon Valley Pressured by Biden to Enter Policy Realm, Trump's Policies Crucial for AI and Crypto Development)

Wall Street Institutions Clash with State Governments, Accused of Denying Service Industries

Besides the crypto industry, some major banks have been accused of refusing services to US gun manufacturers and fossil fuel industries. JP Morgan, City Bank, and Wells Fargo executives met with local officials in Texas and Oklahoma to defend their stance.

These state governments questioned whether banks are abusing corporate decision-making rights by implementing unfair treatment towards specific industries.

Democratic Senator Warren Also Strongly Criticizes Banking Institutions Against Excluding Any Customers

In response, Democratic Senator Elizabeth Warren strongly criticized banking institutions during a hearing in February, stating:

"Regardless of who you vote for, what you believe, or where you're from, you should not be denied financial services or have your rights stripped away by banks."

Even with Trump Supporting Crypto Industry, Fed's Attitude Remains Uncertain

Experts note that although Trump is friendly towards the crypto industry, the Federal Reserve (Fed) will not change its board before 2026, which could be a systemic obstacle. Experts further point out that even if the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) relax restrictions on the crypto industry, the industry's development will still be significantly hindered if the Fed does not cooperate.

Among them, two heavyweight fireside chats are particularly eye-catching, featuring Binance CEO Changpeng Zhao and Zach Witkoff, who is giving his first public speech in Taiwan; there are also two special topic forums, inviting international and local professionals to exchange perspectives and provide diverse viewpoints.

Free Registration to Explore the Web3 Future

This summit is free and open to participate, with online registration and review by the organizers. Whether you are a Web3 entrepreneur, financial technology practitioner, or interested in the future development of blockchain, you can register for this global-level conference.

For registration and event details, please visit the Accupass event page:

https://www.accupass.com/go/binancetwsummit2025