Japan To Bring Crypto Under Insider Trading Rules, Cut Tax Burden: Report

Japan is preparing a major reset of its crypto rulebook, moving to treat digital assets as financial products subject to insider trading laws and to lower the tax burden on profits, the Asahi newspaper reported on Sunday.

The Financial Services Agency is drafting measures that would cover 105 cryptocurrencies listed domestically, including Bitcoin and Ethereum.

Exchanges would need to disclose core facts for each asset, such as whether there is an issuer, what technology it uses and the risk of price swings.

The plan brings market conduct rules familiar to equity traders into crypto. People with non-public information tied to issuers or exchanges would be barred from trading on material events like listings, delistings or bankruptcies before they are disclosed.

Japan Eyes 20% Flat Tax On Crypto Gains, Matching Stock Trading

Distribution would broaden as well. Banks and insurers could sell cryptocurrencies to customers through their securities subsidiaries, giving retail investors access via regulated financial channels.

Tax treatment would shift to a flat 20% on crypto gains, the same rate as stock trading, down from the current top rate of 55%. A simpler, lower rate could pull activity back onshore and reduce incentives to trade through foreign platforms.

The agency aims to submit legislation in next year’s ordinary parliamentary session, the report said.

FSA Pushes Clearer Disclosure To Strengthen Investor Confidence

Domestic venues handle 105 assets today, a small slice of the thousands that trade globally.

The FSA’s disclosure push signals a preference for depth over breadth, with clearer information for the assets that Japanese investors can buy.

Market supervision is tightening elsewhere in Tokyo. Bloomberg reported that Japan Exchange Group is weighing stricter use of backdoor listing rules and may seek fresh audits for companies shifting heavily into crypto positions.

Three listed firms have paused plans to buy digital assets after pushback, and were told their fundraising could be limited if they centered strategies on accumulating crypto.

For traders, the message is clean rules and cleaner data. A 20% rate aligns crypto with equities, insider curbs target information abuse and bank-led distribution offers regulated access.

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