Japan is laying the groundwork for a significant transformation of its crypto regulations. The reform proposal, put forward by the ruling party, aims to introduce major changes under the umbrella of the Financial Instruments and Exchange Act.
If approved, this reform could allow the creation of exchange-traded funds (ETF) based on cryptocurrencies and a drastic reduction of taxes on gains derived from crypto-assets, lowering the rate from 55% to 20%.
Summary
Japan: a new era for crypto is coming thanks to regulatory reform
The bill not only aims to legalize ETFs based on Bitcoin, but also to reform the tax regime applied to cryptocurrency gains. The reduction of the tax rate to 20% could incentivize both individual investors and large companies to increase their investment activities in crypto-assets in Japan.
Another key point of the reform is the new regulation of stablecoins. SBI VC Trade, a subsidiary of the financial giant SBI Holdings, recently announced its entry into the stablecoin market, with a particular focus on transactions in USDC. This development follows the Japanese government’s decision to lift the ban on foreign stablecoins, paving the way for greater integration of these into the national financial system.
Simplification of licenses for VASP
The proposed change also includes a revision of the rules for crypto brokers. Currently, these companies must undergo a rigorous licensing process as Virtual Asset Service Providers (VASP).
The new proposal suggests the creation of a new category of intermediaries with more flexible regulatory requirements, facilitating the entry into the market of new players such as gaming companies and digital wallet providers.
Impact and future prospects on the crypto industry
The approval of these reforms would represent a significant step for Japan, positioning it as a global hub for innovation and investment in digital assets. The reduction of regulatory and tax barriers could attract a greater number of foreign investors and boost the adoption of criptovalute at the retail level.
Protection of crypto investors in Japan
“`htmlAn additional important aspect of the riforme proposte concerns protezione degli investitori. The regulators have suggested meccanismi di sicurezza to evitare il trasferimento all’estero degli asset crypto of domestic users in case of fallimento di una borsa. This measure was inspired by the fall of FTX in 2022, which blocked the fondi degli utenti giapponesi for almost two years.
“`Conclusions
The next months will be crucial for the future of cryptocurrencies in Japan, with the bill that will have to pass the parliamentary review. If approved, it could not only facilitate the adoption of cryptocurrencies among consumers, but also strengthen Japan’s position as a cryptocurrency-friendly nation.
These developments could have a significant impact not only at the national level, but also global, influencing the way in which other countries might reform their policies regarding digital assets.
