Key Takeaways:
Japan reclassified crypto as financial instruments under the FSA to curb insider trading by 2027. Proposed tax cuts from 55% to 20% aim to align digital assets with traditional Japanese stocks. Unregistered sellers face 10-year prison terms and $62,800 fines to boost market transparency. New Compliance Standards and PenaltiesViolators of the proposed regulations face significant penalties. Unregistered sellers could face prison terms of up to 10 years, while maximum fines will increase from approximately $18,800 (¥3 million) to $62,800 (¥10 million). If passed during the current Diet session, the legislation is expected to take effect in fiscal 2027.
Finance Minister Satsuki Katayama underscored the government’s intent at a press conference following the cabinet meeting.
“We will expand the supply of growth capital in response to changes in financial and capital markets, and ensure fairness and transparency in the market and investor protection,” Katayama said.
