Japan is about to make important changes to his cryptore regulation. The government has submitted a bill that reduces the tax on crypto income from 55% to 20%, releasing the road for Bitcoin ETFs and relaxing the rules around Stablecoins. If these reforms are approved, Japan can grow into one of the most crypto-friendly countries in the world.
Lower taxes and ETF approval in sight
The proposed changes fall under the Financial Instruments and Exchange Act and aim to make the cryptomarkt more accessible. One of the most radical reforms is the tax reduction for private investors. A maximum tax rate of 55% currently applies to profits above 200,000 yen ($ 1,797), which discourages many traders. The government wants to lower this rate to 20%, comparable to the tax on shares, to make investments in crypto more attractive.
In addition, the approval of Bitcoin ETFs is on the agenda. These financial products would offer institutional investors a regulated way to get exposure to Bitcoin, just like the Bitcoin spot ETFs approved in the US in January 2024. This can increase the interest of major financial institutions in the Japanese cryptomarket.
Stablecoin rules further relaxed
In addition to the tax and ETF plans, Japan is working on new Stablecoin rules. In 2023 the ban on foreign Stablecoins was dissolved and in February 2024 the Financial Services Agency (FSA) further relaxed the regulations. Now Japan is taking the next step with concrete guidelines for banks and regulated institutions.
A recent example is SBI VC Trade, a subsidiary of SBI Holdings, who officially registered on 4 March to process transactions with USDC. A trial period starts on March 12, followed by a wider rollout. This shows how Japan is increasingly opening up to Stablecoin use.
Measures for more safety
In addition to relaxing, Japan wants to strengthen the protection of investors. The FTX-Crash of 2022 showed how users can lose their credits at a stock market bankruptcy. Japanese FTX users were unable to record their funds for almost two years. The FSA now wants to introduce mechanisms that prevent Japanese investors from losing their crypto as an exchange collapses.
The bill must still be approved by the parliament. If the reforms continue, Japan can become one of the most progressive countries in the field of cryptore regulation.
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Source: https://newsbit.nl/japan-op-weg-naar-een-crypto-revolutie-belastingverlaging-en-etfs-in-zicht/
