Cryptocurrency News Today: Japan Prepares to Cut Taxes, Aiming to Boost Investor Confidence

Key PointsThe cryptocurrency tax in Japan has been reduced from 55% to a fixed 20%The major cryptocurrencies have been reclassified as financial instruments under stricter lawThe new regulations impose investor protection funds for all exchangesThe Japanese Cabinet has approved new comprehensive rules for cryptocurrencies, equating digital assets as financial products and reducing the capital gains tax to 20%. This historic shift aims to restore the country's position as a major cryptocurrency hub.Reclassification and Tax ReformThe Cabinet has approved plans to transfer Bitcoin and other cryptocurrencies from the Payment Services Act to the Financial Instruments and Exchange Act (FIEA). This grants them the same status as stocks and bonds. At the same time, the burdensome tax rate of 55% on cryptocurrency gains will be reduced to a fixed 20%. This change aligns with traditional investments and addresses a major barrier to adoption. More than 22% of former investors cited tax complexity as the main reason for their exit.