Japan is poised to dramatically reshape the cryptocurrency landscape with new rules classifying over 100 cryptocurrencies as financial products under traditional securities law. The move aims to enhance transparency and address concerns about insider trading while encouraging wider investment participation. The Financial Services Agency (FSA) will enforce stricter disclosure requirements for exchanges, requiring detailed information on each token’s risk profile, technology, and pricing volatility, mirroring the standards applied to traditional securities like ETFs or derivatives. Additionally, regulations aim to curb illicit trading based on unpublished market-moving information, aiming to limit insider advantages. This regulatory overhaul also includes a proposed tax reform that would reduce crypto income taxation from up to 55% to around 20%, aligning with the taxation regime for traditional investments. Japan’s two-pronged approach – stricter regulations and a favorable tax policy – aims to foster greater trust in the cryptocurrency market while maintaining its openness to participation. This move comes after years of treating digital assets as loosely regulated, aiming to bring crypto into the established framework of financial services regulation. Japan is aiming to position itself as a reliable hub for Web3 development by integrating cryptocurrencies more tightly within existing financial systems and practices.