Japan’s Financial Services Agency (FSA) is proposing a significant reform of the cryptocurrency market. The FSA intends to reclassify 105 crypto assets, including Bitcoin and Ethereum, under the Financial Instruments and Exchange Act, aligning them with traditional financial instruments like stocks and bonds. This reclassification will also impact tax regulations, potentially reducing the current progressive crypto gains tax rate from up to 55% to a flat 20%. The changes aim to create a more structured and transparent framework for the Japanese crypto landscape, impacting both beginners and experienced investors. A key aspect of this proposal involves new insider-trading restrictions, prohibiting individuals with privileged access (such as those involved in exchanges or projects) from trading on undisclosed information like upcoming token listings or financial backdoor details. These changes will bring 105 specific crypto assets under the FSA’s umbrella and reflect a growing trend worldwide to integrate cryptocurrencies into established financial systems.