- Japan plans 20% crypto tax and strict insider trading rules.
- Finance minister signals crypto as diversification despite volatility concerns.
- Metaplanet boosts Bitcoin holdings to $2 billion, joins FTSE Index.
Japan is signaling a stronger embrace of digital assets while tightening market oversight. According to Bloomberg, Finance Minister Katsunobu Kato stated that cryptocurrencies, though volatile, could still play a role in diversified investments. He pointed out that the ministry will strive to establish an appropriate trading structure for investors.
The Liberal Democratic Party, which is in charge of the government, is driving reforms that could transform the way crypto is regulated and taxed. Currently, personal profits from cryptocurrency trading are taxed at a progressive rate of up to 55%. The party has promised to impose a flat rate of 20 percent, which would make the market more amenable to local traders and more similar to equities.
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In addition to taxation cuts, policymakers are also trying to implement insider trading regulations in the crypto industry. This would be enforced by rules that are akin to those in the stock markets, and would bar misuse of such sensitive information as the listings of tokens and protocol updates. The government wants to make markets more transparent by introducing more stringent guidelines to lessen unfair practices.
Stronger rules meet growing market influence
Japan’s regulatory reputation has long been shaped by its response to major exchange hacks, which led to some of the world’s toughest crypto rules. However, in recent years, there has been a change, with former Prime Minister Fumio Kishida promoting the development of Web3 to avoid a talent exodus and keep innovation within the country.
Regulators are also working to tighten up governance, but companies are also increasing their presence in the digital asset space. Metaplanet, the largest corporate holder of Bitcoin in the country, has been included in the FTSE Japan Index, marking the increasing popularity of crypto-related companies in the traditional financial indices.
The CEO of Metaplanet, Simon Gerovich, acknowledged that the company recently bought $11.7 million worth of Bitcoins. This latest acquisition increased the company’s total holdings to close to $2 billion as more institutions seek to invest in crypto in Japan.
Japan is preparing for a significant shift in crypto policy. With tax relief, insider trading restrictions, and corporate expansion into Bitcoin, the government is setting the stage for a more structured and competitive digital asset market.
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