Japan Considers Approving Bitcoin ETFs, Can Reduce Crypto Tax From 55% To 20%

The Financial Services Agency (FSA) of Japan may finally lift the ban on Bitcoin spot exchange-traded funds (ETFs) and approve it sooner rather than later. 

According to local media reports dated 10 February 2025, “With the lifting of the ban on ETFs that use virtual currencies in sight, this (classifying crypto assets as securities) will also lead to the promotion of their (crypto) use.”

“The FSA is currently holding a closed study session with experts to examine whether the current regulations on virtual currencies are sufficient,” the report said.

BREAKING:

JAPAN PLANS TO CLASSIFY CRYPTO
AS FINANCIAL PRODUCTS, APPROVE
BITCOIN SPOT ETF AND TAX CUTS.

THIS IS MASSIVE !!! pic.twitter.com/1o7wpOR5AR

— Ash Crypto (@Ashcryptoreal) February 10, 2025

Furthermore, reports suggest that FSA is currently focused on Bitcoin and Ethereum ETF approvals. 

Japan is also considering the reclassification of cryptocurrencies. 

In the future, crypto maybe classified under Financial Instruments and Exchange Act (FIEA). Currently, digital assets are treated as payment instruments under the Payment Services Act (PSA). This reclassification would bring cryptocurrencies under stricter financial regulations, akin to securities, requiring companies to provide detailed disclosures about their operations.

While legislative amendments could come by 2026, Japan’s FSA plans to announce its policy direction as early as June 2025. 

Japan Looking To Cut Crypto Tax To 20% 

If Japan finalizes on cutting crypto tax to 20%, it could be a game changer for investors. 

Currently, crypto profits in Japan are taxed as “miscellaneous income,” with rates reaching up to 55%. The tax varies depending on individual income brackets. 

The FSA has proposed lowering this rate to a flat 20%, aligning it with capital gains taxes on stocks and bonds.

Japan’s evolving regulatory landscape and crypto friendly moves has been attracting the attention of major institutional players. For instance, SoftBank, one of Japan’s largest financial firms, has been actively investing in crypto-related ventures, including Cipher Mining.

Furthermore, Blockstream recently expanded its presence in Tokyo, signalling growing confidence in Japan’s crypto ecosystem.

Explore: Japan’s Remixpoint Invests $3.2M to Add 33 BTC To Its Crypto Holdings

Japan’s Remixpoint Invests $3.2M to Add 33 BTC To Its Crypto Holdings

Japanese energy consulting firm Remixpoint has expanded its cryptocurrency portfolio. It acquired an additional 33.34 Bitcoin (BTC) for 500 million yen ($3.2 million).

The Tokyo-listed company announced the purchase on 10 January 2025.  It’s total Bitcoin holdings is now 333.19 BTC, valued at approximately $31.7 million.

The company’s cryptocurrency assets now also include 1,391.3 Ethereum (ETH) worth $4.4 million, 6,724.5 Solana (SOL) worth $1.2 million, 513,060 XRP valued at $1.3 million, 19,468.9 Avalanche (AVAX) worth $694,650, and 1.15 million Dogecoin (DOGE) valued at $402,500.

Remixpoint’s strategy reflects its aim to hedge against the depreciation of the Japanese yen by incorporating cryptocurrencies into its cash management system.

EXPLORE: Buying and Using Bitcoin Anonymously / Without ID

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Akriti Seth

Senior Editor

Akriti Seth is a Zurich-based Business Journalist and Crypto Editor. Her passion for journalism has taken her across the globe – from thriving as an on-television correspondent to writing engaging articles, she has worked for companies like Informa UK, Bloomberg... Read More

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