Beyond Tax Cuts: Japan Enacts New Crypto Regulations

Japan is taking a decisive step beyond mere tax adjustments in the cryptocurrency sector, implementing new regulations that aim to reshape the digital asset market. The Financial Services Agency (FSA) has reclassified certain tokens under securities law, paving the way for greater investor protection and market structure alignment with global standards. This move by the FSA alongside the ruling Liberal Democratic Party is expected to be fully implemented by early 2026. These regulatory reforms are set to enhance market stability and attract increased institutional interest in the country’s tokenized securities market.