Japan about to classify crypto as financial products

[bitterguy28]

due to increase of scam reports recently, japan is looking to tighten regulations on crypto this includes classifying crypto as financial products which requires crypto platforms or exchanges to be registered to financial regulators

this will also differentiate crypto from securities

they are looking to implement this in 2026

what do you think could be the implications of this in the country for crypto? and how will other countries see this?

source

[TomPluz]

Personally, I have no problem with tighter regulatory requirements and procedures as they all serve to further legitimize doing business in the cryptocurrency space and can be effective to weed out bad players like scammers and fraudsters from the market. What I don't like is high tax regime as they don't encourage people to get involved and invest in the industry and can stifle real growth in the process. There must be a balancing act that the government has to do and people in power should talk and communicate with the players to be affected so as to smoothen things out. Japan is a big player in the global cryptocurrency industry and if there can be more people to get a part of us then it could help the market further positively.

[Finassets]

If regulations are reasonable and do not create problems for people who operate fairly, then it’s not an issue. However, unnecessary bureaucracy does make business more difficult.

[target]

It was said in the article that FSA already requested apple and google to block exchange app in the country. Certainly this is an issue already which people may not be able to participate in trading.

Anything that government does in crypto will make it harder for a regular person to just enter into this market and make money because the regulations will be tighter and taxes will be bigger.

[Zed0X]

So basically, other companies using crypto to collect money from investors and those offering crypto-related services are supposed to register with the Government's Financial Regulators. I think this is already common in other parts of the world right? At least for local businesses, they get a permit first and register with SEC before they could operate.

[Jating]

due to increase of scam reports recently, japan is looking to tighten regulations on crypto this includes classifying crypto as financial products which requires crypto platforms or exchanges to be registered to financial regulators

this will also differentiate crypto from securities

they are looking to implement this in 2026

what do you think could be the implications of this in the country for crypto? and how will other countries see this?

source

Isn't it exchanges are already registered to FSA (Financial Service Agency)? So not sure what will be something new with this move by their regulators. But from what I read, the big change is that they will consider insider trading and prohibits it under this new law. But then again, it's very hard to see insider trading in crypto as it is decentralized. Also, Japan has one of the most strictest law as far as crypto goes and this is just one of those so that they can protect the Japanese market for pump and dump schemes.

[r_victory]

The way things are going, every country will eventually find a way to regulate crypto exchanges and platforms. In Brazil, some moves are already happening on this issue. I think it is inevitable, but we will only know the implications over time. There is no way to predict anything at the moment, because they could be good and everyone could benefit positively, or they could be a complete failure.

[joniboini]

Not surprising. I think the immediate effect would be stricter KYC while blocking overseas exchanges to accept users from Japan if they don't register locally. Pretty similar to what's been done in my country, at least from my basic understanding of the news.

Regardless of what will happen, I hope overseas users can still use crypto to buy stuff from Japan through services like DMM. It would be a shame if that's no longer possible considering the rate is much better compared to USD.

[Kemarit]

The way things are going, every country will eventually find a way to regulate crypto exchanges and platforms. In Brazil, some moves are already happening on this issue. I think it is inevitable, but we will only know the implications over time. There is no way to predict anything at the moment, because they could be good and everyone could benefit positively, or they could be a complete failure.

Right, every country will have to set it's own regulation to protect their investors. And that is what Japan is doing, so I do agree that it's not really that surprising to hear this kind of news.

Japan is one of the first country to really regulate everything that relates to crypto because they know that sooner or later there will be huge implications of crypto in their country won't be handled by their government. I do remember that there are a time wherein their crypto exchanges has been targeted by the Lazarus group. And when they are hack, there are no protections from those who have cryptos in their local exchanges. Now, it's totally different, exchanges are required to covered or back everything up because they got the license to operate.

[bitterguy28]

What I don't like is high tax regime as they don't encourage people to get involved and invest in the industry and can stifle real growth in the process.

you are right i also do not think that people will be enthusiastic to let the government know about their crypto investments if the tax is unreasonably high i understand that we all need to pay some taxes but it is obvious that for some governments they are trying to milk this industry too much

people might hide the fact that they are into crypto just to avoid taxes and regulations which would do the opposite of what the government wanted in the first place

[Stompix]

Ftx Japan was the only one that didn't got bankrupt and was actually able to resume operations if the whole company hadn't gone down.
Also, while CZ was threatening people with lawsuits, he was fleeing Jpana because, well, he didn't have any license at all and we know how that ended.

So, who is afraid of those regulations? Certainly not legit players!!

[Faisal2202]

due to increase of scam reports recently, japan is looking to tighten regulations on crypto this includes classifying crypto as financial products which requires crypto platforms or exchanges to be registered to financial regulators

this will also differentiate crypto from securities

they are looking to implement this in 2026

what do you think could be the implications of this in the country for crypto? and how will other countries see this?

I think I heard about this before, as Japan is one of the countries where rules and regulations for crypto are very strict. I also read they have a 55% income tax on crypto, and most of the exchanges there are already licensed by a financial regulatory authority I think named FSA.

But now they are again tightening the rules even though the crime rate is not that high there. I don't know how this makes the present condition more strict because it was already. Think for a second, Binance Japan exchange does not have all the coins listed because Japan's authority, if thinks that coin should not be here, will not allow it to be there for trading in Japan.

[Aanuoluwatofunmi]

due to increase of scam reports recently, japan is looking to tighten regulations on crypto this includes classifying crypto as financial products which requires crypto platforms or exchanges to be registered to financial regulators

this will also differentiate crypto from securities

they are looking to implement this in 2026

what do you think could be the implications of this in the country for crypto? and how will other countries see this?

source

Whatsoever decision they are taking is right once it is going to increase upon the adoption and use of cryptocurrency by the people, we should seek to have more friendly countries to crypto where they can create an enabling environment for anything concerning cryptocurrency, from here on, other countries will also shift ground on their strict law and make it more lenient for their people to use crypto in their daily economic and financial activities, so this is a step forward for them and to also encourage others coming behind them to do the same.

[Asiska02]

This is not a bad idea sincerely, tightening the regulations on crypto is a very vital step in order to make crypto a more reliable financial entity in Japan. The government would have already had a very strong meeting on to who they’re taking this step. It is better to take this step than to allow increase in scam overburden its people, it’ll only make them fearful and more vulnerable of such scams through cryptocurrencies. By regulating this exchanges, it’ll help to further share awareness on how all this scams plays along and how to avoid them when any of them coming to serve as a threat to their holdings in crypto. It is a good step as it’ll help in cryptocurrency development in that region and other countries may also take same step to actualise this also.

[electronicash]

if back int he days countries doesn't have clearer regulations, this 2025 and to the future most countries will finally betaking steps to regulating crypto not just because taking a bite to this industry but using the crypto itself just like US adding them to the strategic reserves.

so what difference does it have if the government considers Bitcoin as property as to Bitcoin as financial product?