Japan is considering new regulations for cryptocurrency.

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Japan's FSA is proposing to classify cryptocurrencies as financial products, applying insider trading rules and lowering the profit tax rate from 55% to 20%. The regulations would cover major cryptos like Bitcoin and require exchanges to disclose risks, with banks allowed to sell through subsidiaries.

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Japan cryptocurrency regulationsFSA legislationcrypto tax reductioninsider trading rulesBitcoin Ethereum

According to Foresight News , citing sources from the Asahi Shimbun, Japan's Financial Services Agency (FSA) is considering legislation to define cryptocurrencies as financial products subject to insider trading rules and to lower their profit tax rate. The regulations would apply to the 105 cryptocurrencies currently circulating in Japan, such as Bitcoin and Ethereum, and would require exchange service providers to disclose information such as price volatility risks. Banks and insurance companies would be allowed to sell cryptocurrencies to depositors and insurance holders through their securities subsidiaries. Profits from crypto exchage would be taxed at a 20% rate, the same as the stock trading tax rate, a significant reduction from the current maximum of 55%. The FSA hopes to pass the legislation during next year's regular Diet session.

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