Japan’s Financial Services Agency (FSA) proposed a comprehensive revival of cryptocurrency, which would clean a path for the launch of the Crypto Exchange-Treded Fund (ETF) and offer a flat 20% tax on a digital asset income.
Proposal, Pur: On Tuesday, the Financial Equipment and Exchange Act (FIEA) suggests recognition of crypto as “financial products”, the same regulatory structure that controls securities and traditional financial products.
The proposed revivalization can also move the current progressive tax system of Japan, which makes the crypto up to 55%rates, an equal 20%, reflects the treatment of shares. This change can make crypto more attractive to both retail and institutional players.
The proposed change is part of the Japanese government’s broad “new capitalism” strategy, which wants to place the country as an investment -leading economy.
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Japan crosses 12 million active crypto accounts
This step comes in the midst of increasing interest in crypto as a legitimate investment property. According to the FSA, by January 2025, more than 12 million domestic crypto accounts were active, with 5 trillions of Japanese yen (about $ 34 billion) assets held on more than platforms.
In the proposal, the FAS also revealed that Crypto’s ownership now crosses the participation between some traditional financial products, such as FX and corporate bonds, especially technology-loving retail investors.
This proposal also responds to an increase in institutional engagement worldwide. The FSA cited data showing more than 1,200 financial institutions including US pension funds and goldman Sachs, which are now US-listed Spot bitcoin ETF,
The purpose of Japanese regulators is to support uniform development at the domestic level, especially in the global fund crypto.
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SMBC, AVA Labs to detect Stablecoins in Japan
In April, Sumitomo Mitsui Financial Group (SMBC), TIS Inc., Ava Labs and Fireblock Signed a memorandum of understanding to find out Commercialization of Stabecrims in Japan. Cooperation will focus on releasing stabechoin given to both US dollar and Japanese Yen.
The group also planned to check the use of stabecoin to settle real -world assets such as stocks, bonds and real estates.
In March, Japan released Its first license To deal with a company to deal with SBI VC trade, a subsidiary of local financial group SBI, it was said that it was preparing to support the USDC of Circle (USDC,
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