- The Prime Minister of Japan, Shigeru Ishiba also interfered in the discussion by showing his belief that crypto assets would help in solving the social problems.
- A lot of censurers and Japanese crypto investors alleged the Japanese crypto market is over-regulated.
- Tokyo is ready to change its legal definition of crypto assets. The current Japanese regulation defines crypto as a type of payment instrument.
The Finance Minister of Japan, Katsunobu Kato has guaranteed that Tokyo will review the controversial and most-hostile crypto tax regulations by the end of June 2025.
According to the official website of the House of Representatives, Kato commented at a plenary session of the House of Representatives on January 31. He replied to the question from the Liberal Democratic Party policymaker Akihisa Shiozaki, the lead of the Web3 Digital Society Promotion office of the Party.
Crypto assets help in solving social problems
Kato also mentioned that the Financial Service Agency will provide a review grounded on the ruling party’s tax system proposals. The review would consist of recommendations on required legislative amendments.
The Prime Minister of Japan, Shigeru Ishiba also interfered in the discussion by showing his belief that crypto assets would help in solving the social problems in the country and enhancing productivity. The healthy development of web3, consisting of crypto assets is very important.
Ishiba asserted that it was critical for the government to ensure user protection as well as enhance the environment of the domestic crypto market. The minister revealed that the FSA will also highlight its proposed alterations to the tax authorities of the country.
Kato will ensure any required changes are established before the new regulations are launched. He also proposed that Tokyo is ready to change its legal definition of crypto assets. The current Japanese regulation defines crypto as a type of payment instrument.
However, the minister said that in reality coins like Bitcoin (BTC) are mostly traded for investment purposes. The Financial Services Agency has shown an intention to take in a broad range of opinions before making an official recommendation on the relevance of existing crypto’s legal status.
The Japanese crypto market is over-regulated
After the FSA started monitoring the Japanese crypto market seriously in 2017, the agency has had the last word on all linked regulations. The LDP, which has been in power on a nearly continuous basis since the 1950s, has drawn up a basic crypto policy.
However, it is the FSA that has drawn up laws and legal amendments. Until now, all of the FSA’s proposals as well as requests made to parliament on the issue have been adopted without waiting more.
A lot of censurers and Japanese crypto investors alleged the Japanese crypto market is over-regulated. This, they alleged, has strangled growth in the Web3 and crypto sectors. At the same time, FSA is also allegedly taking into account the making an amendment to the Payment Services Act.
This step could witness crypto consisting of an asset class under the terms of the Financial Instruments and Exchange Act.
