Japan's Financial Services Agency Considers Transition to Financial Instruments and Exchange Act, Boosting Prospects for Bitcoin ETFs

On the 24th, the Financial Services Agency released a document titled 'Considerations on the Regulatory Framework for Crypto Assets,' announcing the establishment of a working group on crypto asset regulations. The topic is scheduled to be discussed at the Financial Council's general meeting tomorrow, the 25th. The primary focus is the discussion of a proposal to transition the regulation of crypto assets, currently under the Payment Services Act, to the framework of the Financial Instruments and Exchange Act (FIEA). This regulatory change would officially classify crypto assets as 'financial instruments.' If the transition to the FIEA is realized, it would lead to a shift from the current comprehensive taxation (up to 55%) to the same separate taxation of about 20% as stocks, and the potential for Bitcoin ETFs...