when

Read

Japan’s Financial Services Agency is set to review its crypto regulations, potentially leading to lower taxes and allowing domestic funds to invest in tokens. 
<a href="https://crypto.news/tag/japan/" target="_blank">Japan</a> is preparing to review its cryptocurrency regulations, which could result in lower <a href="https://crypto.news/tag/crypto-tax/" target="_blank">taxes</a> and allow domestic funds to invest in tokens, an official at the Financial Services Agency <a href="https://www.bloomberg.com/news/articles/2024-09-30/japan-crypto-review-may-open-door-to-lower-taxes-dedicated-etfs" target="_blank">told</a> Bloomberg. 
The FSA is now reportedly set to assess whether regulating crypto under the Payments Act provides sufficient investor protection, as tokens are used primarily for investment rather than payment. The review could result in reclassifying crypto as financial instruments under Japan’s investment law, which would offer stronger protections, per a person familiar with the matter. 
 You might also like: <a rel="" href="https://crypto.news/crypto-braces-for-a-key-risk-japanese-yen-carry-trade-unwind/"> Crypto braces for a key risk: Japanese yen carry trade unwind </a> 
While no exact timeframe was revealed, the review, expected to continue through the winter, could reduce the current tax rate on crypto gains from as high as 55% to 20%, aligning with other investment assets like stocks, at a time when Japan’s crypto market is recovering with trading volumes at centralized exchanges nearing $10 billion per month, according to CCData. 
In February, Japan took <a href="https://crypto.news/japanese-cabinet-approves-crypto-assets-for-investment-by-venture-capital-firms/" target="_blank">further steps</a> to support its blockchain ecosystem by allowing local investment limited partnerships to invest in cryptocurrencies, part of a broader legislative change aimed at encouraging venture capital investment in web3 projects. 
As crypto.news <a href="https://crypto.news/japanese-cabinet-approves-crypto-assets-for-investment-by-venture-capital-firms/" target="_blank">reported</a>, the amendment to the Act on Strengthening Industrial Competitiveness aims to provide regulatory clarity for crypto-focused startups and boost Japan’s venture capital scene, underscoring the government’s intent to strengthen its crypto sector, paving the way for more significant developments in the web3 space. 
 Read more: <a rel="" href="https://crypto.news/japan-eyes-on-stopping-p2p-transfers-from-fiat-to-crypto/"> Japan eyes on stopping P2P transfers from fiat to crypto </a>

Japan’s FSA to reclassify crypto in upcoming rule review: report

crypto.news

Other articles published on Sep 30, 2024

Coinpedia Fintech News

Dogecoin Creator Reacts to DOGE 20% Weekly Surge

VISION

LADYS Unveils New Roadmap as it Enhances Community Offerings (30 Sep)

New Development in Trump's Altcoin! Investors Who Want to Buy Must Do This!

Why Is Bitcoin Facing a Price Fall?

Join our free newsletter for daily crypto updates!