Japan is about to begin an overhaul of the country’s cryptocurrency rules, opening the possibility of lower taxes on digital assets and potentially paving the way for the rollout of domestic funds that invest in tokens.
The Financial Services Agency will assess in the coming months whether the current approach to regulating crypto under the Payments Act is adequate, an agency official said, asking not to be identified in line with the agency’s rules.
The FSA will investigate whether the law provides adequate investor protection, as tokens are mainly used for investments and not for payments, the official said. That could lead to changes in the law, or the reclassification of crypto as financial instruments covered by the investment law, the official said.
