Japan to classify cryptocurrencies as financial products: Report
Japan’s finance regulator is planning to change the country’s laws to classify cryptocurrencies as financial products as early as 2026, according to the local outlet Nikkei.
The Financial Services Agency (FSA) plans to submit a bill to parliament to revise the Financial Instruments and Exchange Act as early as next year after having considered the changes through internal study groups, Nikkei reported on March 30 without citing a source.
The outlet reported that the details are still being finalized, but the change would see cryptocurrencies likely put under insider trading laws that currently apply to other financial products, such as stocks, which outlaw trades based on insider information.
However, cryptocurrencies are likely to be put in a separate category from securities such as stocks and bonds.
If the changes go through and crypto is regulated under the country’s finance laws, companies offering crypto would have to register with the FSA.
Nikkei reported that the regulator plans to enforce the new rules regardless of whether a company operates in Japan, but it was unclear how the laws would be enforced against overseas entities.
Also unclear was what cryptocurrencies would be regulated and how distinctions would be made between widely traded assets such as Bitcoin (BTC) and Ether (ETH) compared to speculative and high-risk tokens such as memecoins.
The FSA’s headquarters is in central Tokyo, just across the street from the Ministry of Finance. Source: Wikimedia
The reported upcoming change comes amid a wave of pro-crypto moves made by Japan’s regulators and government.
Related: USDC stablecoin receives approval for use in Japan, says Circle
Earlier this month, the country issued its first license allowing a company to deal with stablecoins to SBI VC Trade, a subsidiary of the local financial conglomerate SBI, which said it was preparing to support Circle’s USDC (USDC).
The country’s ruling Liberal Democracy Party also moved ahead with reforms to slash the capital gains tax on crypto from 55% to 20% and categorize digital assets as a distinct asset class.
In February, local reports said the FSA was looking to lift a ban on crypto-based exchange-traded funds (ETFs) to align with the policy position of Hong Kong, which approved crypto ETFs for trading in April 2024.
Asia Express: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster
Spain’s Sumar parliamentary group has introduced amendments to reform three major tax laws affecting cryptocurrencies, including the General Tax Law, Income Tax Law and Inheritance and Gift Tax Law, according to local media.
The proposal would change how crypto profits are taxed, shifting gains from non-financial-instrument assets into the general income tax bracket, which would raise the top rate to 47% instead of the current 30% savings rate, while setting a flat 30% tax for corporate holders, according to a Tuesday report from CriptoNoticias.
Sumar is a left-wing political alliance that holds 26 of the 350 seats in Spain’s Congress of Deputies as of early 2024. It is also a junior partner in the governing coalition with the Socialist Party.
The plan by the left-wing political platform would also require the National Securities Market Commission (CNMV) to create a visual “risk traffic light” system for cryptocurrencies, to be displayed on investor platforms.
Another controversial element is the proposal to classify all cryptocurrencies as attachable assets eligible for seizure. Lawyer Cris Carrascosa said on X that this is unenforceable, especially for tokens like Tether’s USDt (USDT), which cannot be held by regulated custodians under MiCA rules.
Related: How to file crypto taxes in 2025 (US, UK, Germany guide)
Critics call it an attack on Bitcoin
In a post on X, economist and tax adviser José Antonio Bravo Mateu denounced the amendments as “useless attacks against Bitcoin,” arguing that the measures misunderstand how decentralized assets work. He noted that Bitcoin held in self-custody cannot be seized or monitored in the same way as traditional financial assets.
“The only thing these measures achieve is to make its holders residing in Spain think about fleeing when BTC rises so high that they no longer care what politicians say,” he warned.
Meanwhile, tax inspectors Juan Faus and José María Gentil have recently suggested creating a special, more favorable tax regime specifically for Bitcoin (BTC). Their proposal allows taxpayers to separate wallets and apply either FIFO (first-in, first-out) or weighted-average methods, with value adjustments when moving assets between wallets to prevent tax gaming.
Spain’s tax agency has been warning crypto holders about taxes for years, sending 328,000 warning notices for taxes on crypto for the 2022 fiscal year in 2023, followed by 620,000 similar notices a year later.
Related: Bitcoin for taxes? Proposed bill would let Americans pay the IRS in BTC
Japan plans 20% flat tax
While Spain considers increasing taxes on crypto gains, Japan’s Financial Services Agency (FSA) is pushing for a tax reform that would dramatically reduce the burden on crypto investors.
Instead of taxing crypto earnings as “miscellaneous income” at rates that can reach 55%, Japan aims to apply a flat 20% capital gains tax, bringing digital assets in line with equities and making the country more competitive for traders and businesses.
Magazine: 2026 is the year of pragmatic privacy in crypto — Canton, Zcash and more
Market infrastructure provider Deutsche Börse plans to integrate the EURAU euro-pegged stablecoin issued by AllUnity, expanding the exchange group’s digital-asset strategy following earlier ties with Circle’s Euro Coin (EURC) and Societe Generale-Forge’s EUR CoinVertible (EURCV).
According to a Wednesday announcement shared with Cointelegraph, Deutsche Börse plans to integrate EURAU into its financial market infrastructure, starting with institutional custody through its central securities depository arm, Clearstream. The announcement also promised a future “integration of the euro stablecoin across the entire service portfolio.”
This would integrate the stablecoin into a sizable and growing market. According to World Federation of Exchanges data, Deutsche Börse’s domestic equity market capitalization is about $2.23 trillion with 474 listed companies.
The two companies signed a memorandum of understanding, but have not yet shared a specific date for when the new features will go live. AllUnity CEO Alexander Höptner said that the partnership is “making onchain cross-border payments and digital assets accessible to institutional market participants.”
Deutsche Börse Group executive board member Stephanie Eckermann said the “goal is to build a seamless bridge between the established financial world and the future of digital assets.” She added that this partnership is an important part of the effort and that embedding institutional-grade stablecoins allows clients “to confidently explore new possibilities in digital finance.”
Deutsche Börse and AllUnity had not responded to Cointelegraph’s inquiry by time of publication.
Related: Stablecoin panic could upend ECB policy, Dutch central bank governor warns
Deutsche Börse expands euro stablecoin strategy
Deutsche Börse’s EURAU integration follows its partnership with major stablecoin issuer Circle to adopt its EURC token in late September. Earlier this month, the company also announced that it had partnered with Societe Generale-Forge to integrate its EURCV stablecoin.
With this latest deal, Deutsche Börse appears to be playing the stablecoin game on all fronts, adding EURAU, issued by a German BaFin-licensed e-money institution. This complements EURCV, a bank-tied stablecoin, as Societe Generale-Forge is the blockchain arm of major French multinational bank Societe Generale; EURC comes from a US tech-sector issuer.
Related: Aave to offer zero-fee stablecoin ramps in Europe after MiCA approval
EU stablecoin adoption is taking shape with MiCA
While not leading to as many headlines as the United States, the European Union is also making progress in stablecoin adoption following the full introduction of the Markets in Crypto-Assets Regulation (MiCA) framework at the end of 2024. The announcement noted that the partnership “aligns with MiCA” and “represents a tangible step toward digitizing European markets and enhancing settlement and liquidity processes.”
Höptner said, “Europe is taking a global lead in regulated digital finance.”
Still, while picking up speed, stablecoin adoption remains low in Europe. Earlier this month, financial stability experts at the European Central Bank (ECB) said stablecoin-related risks in the euro area were limited due to low adoption and preventative regulation.
Some analyses point to euro stablecoins as a response to concerns that US dollar-backed stablecoins could threaten the European Union’s monetary independence. “Europe should not be dependent on US dollar-denominated stablecoins, which are currently dominating markets,” Pierre Gramegna, the managing director of the European Stability Mechanism, said earlier this month.
The industry is also seeing increasing involvement by local traditional financial players. In mid-October, Franco-German banking group ODDO BHF launched a stablecoin pegged to the euro under the MiCA framework.
In late September, a group of major European banks joined forces to launch a euro-pegged stablecoin under MiCA. The list of nine banks includes Dutch lender ING and Italy’s UniCredit.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment3 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024