The Japanese financial regulator is preparing to review cryptocurrency regulations, potentially lowering crypto taxes and paving the way for a digital assets exchange-traded fund (ETF).
The review will focus on assessing the adequacy of current regulations under the Payments Act and determining if it provides sufficient investor protection.
Reclassifying tokens as financial instruments under Japan's investment law is being considered, which could lead to reduced tax rates on crypto gains and the launch of token-based ETFs.
Despite past challenges with cryptocurrency exchanges, the Japanese regulator aims to regulate without excessive restrictions, allowing room for growth and attracting institutional investors.