Japan Approves 20% Crypto Tax and Insider Trading Ban

Japan has taken significant steps towards regulating its cryptocurrency market with the approval of a bill that classifies cryptocurrencies as financial products. The bill introduces a 20% tax on gains from FSA-approved tokens, reducing compliance friction for domestic investors and supporting clearer rules for reporting, custody, and brokerage workflows.

The reclassification also brings conduct standards closer to equities, introducing an insider trading ban for crypto. This move is expected to deter information abuse around listings or exchange events, which often drive sharp moves in the market.