Japan May Introduce Bitcoin ETFs as Regulator Suggests 20% Flat Tax on Crypto Gains and 'Financial Product' Classification: Report

Japan's Tax Code Revision: Japan's Financial Services Agency is proposing a revision to the tax code for cryptocurrencies, aiming for a flat 20% tax rate on gains, moving away from the current system that taxes up to 55%.

New Classification for Cryptocurrencies: The proposal includes reclassifying cryptocurrencies as "financial products" under the Financial Instruments and Exchange Act, which could facilitate the introduction of cryptocurrency exchange-traded funds (ETFs).

Legislative Timeline: The proposal is expected to be finalized by the end of August, with plans for a legislative bill in 2026.

Advancements in Cryptocurrency: This initiative follows Japan's recent advancements in the crypto space, including the authorization of JPYC Inc. to issue yen-backed stablecoins on various blockchain platforms.