Japanese regulators plan to reclassify 105 cryptocurrencies, including BTC and ETH, as "financial products," potentially reducing the tax rate to 20%.

According to Mars Finance, on November 16th, Japan's Financial Services Agency (FSA) plans to reclassify 105 crypto assets, including Bitcoin and Ethereum, as financial products and bring them under the regulatory scope of the Financial Instruments and Exchange Act. Currently, Japanese residents are required to declare cryptocurrency gains as "miscellaneous income," with a maximum tax rate of 55%. After the reclassification, trading gains from these 105 tokens will be taxed as capital gains, with the tax rate reduced to a uniform 20%, on par with stock trading taxes. The proposal is reportedly expected to be included in the budget bill in early 2026.