What is Japan's Financial Services Agency (FSA) proposing for cryptocurrencies?

The FSA is proposing regulations that would define cryptocurrencies as financial products subject to insider trading rules and reduce the tax rate on profits from cryptocurrency transactions.

Which cryptocurrencies will the new regulations in Japan apply to?

The proposed regulations will apply to 105 types of cryptocurrencies available in Japan, including Bitcoin and Ethereum.

How will the new regulations impact banks and insurance firms in Japan?

Under the new rules, banks and insurance firms will be allowed to sell cryptocurrencies to their customers through their securities subsidiaries.

Home / Business and Economy / Japan Unveils Crypto Regulations: Insider Trading Rules and Tax Cuts

Japan Unveils Crypto Regulations: Insider Trading Rules and Tax Cuts

17 Nov

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Summary

Japan to regulate 105 cryptocurrencies, including Bitcoin and Ethereum
Crypto profits to be taxed at 20%, down from up to 55%
Banks and insurers allowed to sell crypto through subsidiaries

Japan Unveils Crypto Regulations: Insider Trading Rules and Tax Cuts

As of November 17, 2025, Japan's Financial Services Agency (FSA) is set to introduce a series of new regulations governing the country's cryptocurrency market. The proposed rules will apply to 105 different cryptocurrencies available in Japan, including industry giants like Bitcoin and Ethereum.

Under the new framework, cryptocurrencies will be defined as financial products, subjecting them to insider trading regulations. Additionally, the tax rate on profits earned from crypto transactions will be reduced from the current maximum of 55% down to a flat 20% rate, aligning it with the tax on stock trading.

Furthermore, the regulations will open up new avenues for traditional financial institutions to participate in the crypto space. Banks and insurance firms will be permitted to offer cryptocurrency services to their customers through dedicated securities subsidiaries.