According to Odaily, Japan's Financial Services Agency has announced plans to potentially reclassify cryptocurrencies like Bitcoin as 'financial assets.' This shift is outlined in the agency's tax reform request for the fiscal year 2025, aiming to recognize crypto assets as investments accessible to the general public. Currently, under Japan's Payment Services Act, cryptocurrencies are categorized as 'payment instruments.' The proposed change would signify a move towards legitimizing cryptocurrencies, contingent on the industry's stability.
While the document does not explicitly call for crypto tax reform, CoinPost suggests that Japan's controversial crypto tax rules might be subject to review. This development follows a similar proposal by Japan's ruling Liberal Democratic Party (LDP) in their fiscal year 2025 tax policy recommendations. The LDP advocates for integrating the cryptocurrency sector into regulations concerning accountability and investor protection, akin to those governing publicly traded stocks. This would enable certain crypto assets to be treated as 'financial products' commonly used in public investment portfolios.
