Japan is preparing to amend its large-scale cryptocurrency policy.

The Financial Services Agency of Japan (FSA) is preparing a comprehensive reform of the legal framework for digital assets, combining tax regulation and upgrading rules. A highlight is the transfer of profits from cryptocurrency to a tax regime similar to stocks with a fixed tax rate of 20%, instead of a progressive rate over 50%, while also allowing for loss carryforward for three years. The plan is expected to take effect from the fiscal year 2026, helping to reduce burdens and encourage investment.

At the same time, the FSA wants to reclassify crypto as financial products, paving the way for ETF funds, including spot Bitcoin. This is seen as a step forward to provide transparent, supervised products, increasing market confidence.

Although 88% of the population has never owned Bitcoin, surveys show that more than half of Japanese financial institutions plan to invest in crypto in the next three years. Reforms are expected to boost both individual and institutional investors, aligning with Japan's "New Capitalism" strategy.