Japan's Financial Services Agency plans to treat cryptocurrencies as investment assets, shifting from payment tools to "financial products"

Japan's Financial Services Agency's plan to treat cryptocurrency as a financial asset marks significant progress in the country's cryptocurrency regulatory and tax policies, and is expected to promote market legalization and investor confidence. (Synopsis: The yen depreciates 158, hitting a 5-month low, Japan's Central Bank hints that the conditions are ripe for interest rate hikes, and experts warn that something big will happen in January) (Background supplement: Japan will build BTC reserves? Prime Minister Shigeru Ishiba: At present, there is a lack of sufficient information, security and liquidity are the top considerations) Japan's Financial Services Agency recently announced plans to change the legal classification of cryptocurrencies to treat encryption assets such as BTC as "financial assets." This may not only affect tax policy, but also have a profound impact on the legalization of the encryption industry and investment regulations. Official documents show that the Financial Services Agency unveiled its position in the 2025 fiscal and tax reform request, hoping to start treating encryption assets as "financial assets that ordinary people can invest in." Shift from payment instruments to investment assets Currently, Japanese law classifies encryption assets as "payment instruments" under the Payment Services Act, that is, the main purpose is transaction payment. However, Japan's Financial Services Agency proposed in its 2025 fiscal and tax reform request that it wants to change the definition of encryption assets as "financial assets that ordinary people can invest in." This shift means that cryptocurrencies such as BTC will be seen more as investment vehicles similar to stocks or funds, rather than as a mere payment method. Such a change will not only give cryptocurrency greater market legitimacy, but also help enhance its status as an investment product, allowing more investors to join the encryption investment field. Tax reform still unclear Although the Financial Services Agency document does not directly mention tax reform for cryptocurrency, Japanese encryption media CoinPost noted that this indicates that the current encryption tax rules may be revisited. For a long time, the encryption industry has complained about Japan's high tax policy, especially the high tax burden on trading profits, which has greatly reduced the attractiveness of the Japanese market to encryption companies. In the future, the adjustment of the tax system may improve Japan's competitiveness in the international encryption market. Liberal Democratic Party's support Prior to this, Japan's ruling Liberal Democratic Party (LDP) also put forward similar propositions to the Financial Services Agency in its 2025 fiscal and tax policy proposals. The LDP wants to include cryptocurrency in the "Accountability and Investor Protection Regulations" and refer to the way TradFi products such as stocks are managed. This means that certain encryption assets will be treated as "financial products" commonly found in "popular portfolios", further cementing their position as mainstream investment targets. Related reports The yen depreciated above 158, hitting a 5-month low, Japan's Central Bank hinted that the conditions were ripe for interest rate hikes, and experts warned that something big would happen in January Japan will build BTC reserves? Prime Minister Shigeru Ishiba: At present, there is a lack of sufficient information, safety and liquidity are the top concerns Japan's Central Bank meeting minutes: 2025 may gradually raise interest rates to 1% If inflation meets expectations, the yen depreciates below 157 (Japan's Financial Services Agency plan: treat cryptocurrency as an investment asset and turn it from a payment instrument to a "financial product") This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Block Chain News Media".