INSUBCONTINENT EXCLUSIVE:
crypto exchange-traded funds (ETFs) and introduce a flat 20% tax on digital asset income.The proposal, introduced on Tuesday, suggests
progressive tax system, which taxes crypto gains at rates up to 55%, to a uniform 20%, mirroring the treatment of stocks
That change could make crypto investing more attractive to both retail and institutional players.The proposed shift is part of the Japanese
fiscal debt crisis means for global crypto marketsJapan surpasses 12 million active crypto accountsThe move comes amid increasing interest
in crypto as a legitimate investment asset
According to the FSA, more than 12 million domestic crypto accounts were active as of January 2025, with assets held on platforms exceeding
5 trillion Japanese yen (about $34 billion).In the proposal, the FAS also revealed that crypto ownership now surpasses participation in some
traditional financial products, such as FX and corporate bonds, particularly among tech-savvy retail investors.The proposal also responds to
the surge in institutional engagement worldwide
The FSA cited data showing over 1,200 financial institutions, including US pension funds and Goldman Sachs, now hold US-listed spot Bitcoin
Source: FSAJapanese regulators aim to support similar developments domestically, especially as global fund flows into crypto continue to
Sumitomo Mitsui Financial Group (SMBC), TIS Inc., Ava Labs and Fireblocks signed a Memorandum of Understanding to explore the
commercialization of stablecoins in Japan
The collaboration will focus on issuing stablecoins pegged to both the US dollar and Japanese yen.The group also plans to examine the use of
a company to deal with stablecoins to SBI VC Trade, a subsidiary of the local financial conglomerate SBI, which said it was preparing to
