Japan’s Financial Services Agency is weighing a major overhaul of cryptocurrency oversight that would classify digital assets as financial products subject to insider-trading rules, according to a report in the Asahi newspaper. The proposed framework would cover roughly 105 cryptocurrencies listed in Japan, including bitcoin and ethereum, and would require exchanges to provide clearer disclosures about price-volatility risks and other material information.

The plan would also broaden distribution channels. Banks and insurance companies would be allowed to sell cryptocurrencies to customers through their securities subsidiaries — a significant expansion of access that would bring digital assets more in line with traditional investment products.
A key feature of the proposal is a sharp reduction in the tax burden on retail investors. Profits from crypto transactions would be taxed at a flat 20% rate — the same as stock trading — replacing the current progressive tax regime that can reach as high as 55%.

The FSA aims to secure the necessary legislative changes during next year’s ordinary Diet session, the report said. The agency did not comment on the newspaper’s account.

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The proposed shift could boost Japanese crypto participation by cutting tax rates and broadening access, while stricter classification and disclosures may raise compliance costs for exchanges.

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