Japan’s Financial Services Agency (FSA) has proposed a major overhaul of its cryptocurrency tax system. The proposal aims to lower the tax rate for crypto gains from 55% to 20%, aligning with stock capital gains taxes and potentially boosting investor interest in the country’s burgeoning crypto market. 105 cryptocurrencies will be reclassified as financial products under Japan’s Financial Instruments and Exchange Act, allowing for this tax reduction. The policy will require exchanges to disclose details about token issuers and blockchain technology, promoting regulatory transparency and compliance with the new system. This change could significantly impact the cryptocurrency market by attracting investors due to the reduced tax burden, aligning regulations with global standards, and potentially increasing both retail and institutional crypto activity in Japan.