Michaela
Japan’s Financial Services Agency (FSA) has reportedly begun planning a major update to the country’s crypto regulations, aiming to classify digital assets as “financial products” under the Financial Instruments and Exchange Act.
Key Points
- The FSA is expected to present the proposal to Japan’s main parliamentary session in 2026 for consideration
- Following Japan’s broader push to tighten and modernize crypto regulations, Shiba Inu (SHIB) has been added to the country’s “Green List” of pre-approved cryptocurrencies
- The proposal also aims to strengthen protections against insider trading in Japan’s crypto market
Local reports indicate that the FSA’s proposal would require domestic exchanges to provide mandatory disclosures for 105 listed cryptocurrencies, while also subjecting them to insider trading regulations for the first time.
If approved, the plan would require exchanges to provide detailed information on each of the listed tokens, including the presence of an identifiable issuer, the underlying blockchain technology, and the asset’s volatility profile. The FSA is expected to present the proposal to Japan’s main parliamentary session in 2026 for consideration.
Following Japan’s broader push to tighten and modernize crypto regulations, Shiba Inu (SHIB) has been added to the country’s “Green List” of pre-approved cryptocurrencies. This marks a key step in its regulatory recognition, placing SHIB alongside Bitcoin and Ethereum and potentially positioning it to benefit from the government’s proposed crypto tax reductions and FSA initiatives.
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The proposal also aims to strengthen protections against insider trading in Japan’s crypto market. The bill would bar individuals or entities with access to non-public information, such as upcoming token listings, delistings, or signs of financial distress from issuers, from trading the affected cryptocurrencies.
Currently, Japanese residents report crypto profits as miscellaneous income, with top earners facing a 55% tax rate. This contrasts with many countries where crypto gains are treated as capital gains. Under the FSA’s proposed changes, earnings from 105 approved cryptocurrencies, including SHIB, would instead be taxed at a flat 20% rate, simplifying the system and potentially easing the burden on traders.
In October, the FSA began reviewing current regulations to explore allowing banks to hold cryptocurrencies such as Bitcoin as investment assets and to operate licensed crypto exchanges. The move would mark a major policy shift, as existing rules currently prevent banks from holding digital assets due to volatility concerns. Regulators are expected to assess risk management measures to mitigate potential market swings that could impact a bank’s financial stability.
Related: The History of Altcoins: How Bitcoin’s Rivals Changed the Crypto Game
If enacted, these regulatory changes could reshape Japan’s crypto landscape, creating clearer rules for investors and businesses while enhancing market transparency. By combining stricter oversight with tax incentives, the FSA appears poised to balance innovation with investor protection, signaling a new era of legitimacy and growth for digital assets in the country.
Read More
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- Japan FSA Report Proposes Stricter Crypto Rules: How Does It Impact SHIB?
- Japan’s Finance Minister Backs Crypto — What It Could Mean for SHIB
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
