Japanese regulators plan to reclassify 105 cryptocurrencies including BTC and ETH as "financial products," with tax rates possibly reduced to 20%.

Jinse Finance reported that the Financial Services Agency (FSA) of Japan plans to reclassify 105 crypto assets, including bitcoin and ethereum, as financial products and bring them under the supervision of the Financial Instruments and Exchange Act. Currently, Japanese residents are required to declare crypto earnings as "miscellaneous income," with a maximum tax rate of up to 55%. After the reclassification, trading profits from these 105 tokens will be taxed as capital gains, with a unified tax rate reduced to 20%, the same as stock trading. According to reports, this proposal is expected to be included in the budget plan at the beginning of 2026.