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
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
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.
These sweeping changes are part of Japan's broader efforts to bring greater oversight and stability to its rapidly evolving digital asset landscape. The FSA hopes to pass the necessary legislation during the country's next ordinary parliamentary session, signaling a significant shift in the regulatory approach to cryptocurrencies in the world's third-largest economy.
