Tag Archives: crypto

Analysis: Japan Will Reclassify Crypto as Financial Products—What It Means for Investors

Analysis: Japan Will Reclassify Crypto as Financial Products—What It Means for Investors

Japan is taking a significant step toward reshaping its approach to cryptocurrency regulation. By 2026, the Financial Services Agency (FSA) plans to reclassify crypto assets as financial products under the Financial Instruments and Exchange Act. This shift will bring cryptocurrencies under the same regulatory framework as stocks and bonds, subjecting them to insider trading rules and stricter oversight.

The decision reflects Japan’s shifting stance on digital assets. Initially recognized primarily as a payment method, cryptocurrencies have grown into an investment class with increasing market influence. As blockchain technology and cashless transactions gain momentum, integrating crypto into the broader financial system appears to be a logical progression. However, this reclassification also raises questions about market access, investor protection, and the long-term impact on innovation in the sector.

Japan’s Crypto Regulations Have Changed

Japan has a history of regulating cryptocurrencies. In 2016, it recognized Bitcoin as a legal form of payment under the Payment Services Act. However, the regulatory framework treated crypto primarily as a payment method, not an investment vehicle.

Over time, as the market grew, challenges such as fraud, manipulation, and unclear regulations emerged. By the end of 2024, Japan had around 11.8 million crypto accounts, an increase of about three million from the previous year. The country ranked 23rd globally in crypto adoption, alongside South Korea and Hong Kong.

Stronger Rules Aim to Reduce Risks

The FSA’s decision reflects an effort to address market risks. Reclassifying crypto assets as financial products will bring them under stricter regulations, including bans on insider trading. This move follows similar trends in other regions.

In the US, the Securities and Exchange Commission (SEC) has pursued legal action against companies for offering tokens it classifies as securities. The European Union’s Markets in Crypto-Assets (MiCA) framework has also introduced comprehensive regulations for digital assets.

Pushing for a Cashless Economy

Japan has been promoting a cashless economy for over a decade. In 2019, cashless transactions accounted for 26.8% of total payments.

By 2023, this figure had risen to 39.3%, amounting to 126.7 trillion yen ($885 billion), according to the Ministry of Economy, Trade, and Industry. The government aims to increase this to 40% by 2025. Blockchain technology is expected to play a role in achieving this goal.

Potential for ETFs and Lower Taxes

One expected impact of the new regulations is the potential approval of spot crypto exchange-traded funds (ETFs). These are currently prohibited in Japan. Lawmakers are also discussing reducing the tax on crypto gains from 55% to 20%, aligning it with stock investments.

Currently, crypto profits are taxed as miscellaneous income, resulting in high tax rates. A reduction could attract more investors and increase liquidity in the Japanese market.

Institutional Investment Could Increase

The introduction of crypto ETFs could also encourage institutional investment. In the US, spot Bitcoin ETFs approved in early 2024 saw rapid adoption, accumulating over $10 billion in assets within six months.

If Japan follows a similar path, its market could experience significant growth. The FSA has been holding closed-door discussions with legal and financial experts since October 2024. The agency plans to finalize its policy direction by June 2025, with legislative changes expected in 2026.

Retail Investors May Face Restrictions

The new classification raises concerns about restrictions on retail investors. The FSA has already taken steps to limit access to unregistered foreign exchanges. In 2024, it requested that Apple and Google remove five platforms—Bybit, KuCoin, MEXC Global, LBank, and Bitget—from their app stores in Japan.

While this measure aims to protect investors, it may also reduce choices for those seeking tokens not listed on local exchanges. Some investors could turn to unregulated platforms, increasing exposure to risks.

Aligning with Global Crypto Regulations

The reclassification aligns with Japan’s broader financial and economic policies. In 2022, the FSA introduced regulations for fiat-backed stablecoins.

In April 2024, corporate tax exemptions on unrealized crypto gains were introduced, encouraging corporate involvement in the sector. These developments indicate a structured approach to integrating digital assets into the economy.

Globally, other regions are also tightening crypto regulations. The US, EU, and Singapore have introduced frameworks to manage risks while fostering innovation. Japan’s approach could influence other Asian markets, shaping regional regulatory trends.

Public Reactions Remain Divided

Public reactions to the FSA’s decision are mixed. Some see it as a necessary step toward stability and institutional adoption. Others worry about excessive regulation restricting market growth.

The balance between oversight and innovation will be critical in determining the impact of these changes. Japan’s approach in the coming years will be closely watched as a model for future crypto regulation.

 

 

 

Source: https://www.financemagnates.com/cryptocurrency/analysis-japan-will-reclassify-crypto-as-financial-products-what-it-means-for-investors/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

What is the Crypto Strategy for a Newbie? Anndy Lian Explains on Moneyverse Show

What is the Crypto Strategy for a Newbie? Anndy Lian Explains on Moneyverse Show

In a recent episode of The Moneyverse Show, seasoned blockchain expert Anndy Lian shared practical insights for newcomers venturing into cryptocurrency. With over a decade of experience in the crypto world and as the author of influential books like NFT from Zero to Hero and Blockchain Revolution 2030, Lian offered a clear roadmap for beginners like Vasajit, who are eager to explore digital assets but unsure where to start.

The Foundation: Bitcoin and Ethereum
For those just dipping their toes into crypto, Lian’s advice is refreshingly simple—begin with the two most established cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH). These assets serve as the bedrock of the crypto market, offering relative stability compared to the wild swings of smaller altcoins. Bitcoin, often referred to as digital gold, is a long-term store of value, while Ethereum powers the vast ecosystem of decentralized applications and smart contracts.

Lian recommends purchasing these through centralized exchanges (CEXs) such as Binance, Bybit, or Coinbase. These platforms are user-friendly and allow fractional purchases, meaning you don’t need to buy an entire Bitcoin or Ether to get started. Even small, regular investments—like $200 a month—can accumulate into a meaningful position over time.

Taking the Next Step: Decentralized Finance
Once comfortable with the basics, Lian encourages new investors to explore decentralized finance (DeFi) by setting up a non-custodial wallet like Trust Wallet, MetaMask, or OKX Web3 Wallet. Unlike centralized exchanges, where the platform holds your keys, these wallets give you full control over your assets—a fundamental principle of true cryptocurrency ownership.

Venturing into DeFi opens doors to emerging projects, staking opportunities, and yield farming, where investors can earn passive income by providing liquidity. However, Lian cautions that this space is also rife with risks, including scams and extreme volatility. His advice? Start with small amounts, thoroughly research projects, and never invest more than you can afford to lose.

The Power of Dollar-Cost Averaging
For those wary of market turbulence, Lian highlights dollar-cost averaging (DCA)—a strategy where you invest a fixed amount at regular intervals, regardless of price fluctuations. This approach removes emotion from investing and smooths out the impact of market highs and lows. He shared an inspiring example of a friend who consistently bought Bitcoin over five years, building a substantial portfolio despite the market’s ups and downs.

Balancing Risk and Reward
While Lian advocates for cautious investing, he doesn’t dismiss high-risk, high-reward opportunities. He recounted a personal experience where he invested in a low-market-cap project that skyrocketed from $2 million to $80 million in just days. However, he emphasizes that such wins are exceptions, not the norm. His key takeaway? Always have an exit strategy and treat speculative investments like “lottery tickets”—fun to explore, but never with money you can’t afford to lose.

The Golden Rule: Knowledge Before Investment
Lian’s final piece of advice is universal: education is the most valuable asset in crypto. Whether you’re buying Bitcoin, experimenting with DeFi, or exploring new tokens, understanding what you’re investing in is non-negotiable. The crypto market moves fast, and while opportunities abound, so do pitfalls.

For beginners, the journey starts with patience, discipline, and a willingness to learn. As Lian puts it, “It’s not about how much you invest, but how wisely you invest.”

The Moneyverse Show is available in the U.S., Australia, and Singapore.

Disclaimer: This article is for educational purposes only and not financial advice. Cryptocurrency investments carry risks; always conduct your own research.

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake

Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake

Binance co-founder Changpeng “CZ” Zhao donated over half a million dollars worth of crypto to the earthquake disaster relief effort in Thailand and Myanmar, in another testament to the growing utility of blockchain-based emergency charity efforts.

Zhao donated 1,000 BNB tokens worth almost $600,000 to the disaster relief funds for the region on March 3, blockchain data shows.

“Sent 1000 BNB for the donation for Myanmar and Thailand,” wrote Zhao in an April 3 X post.

The crypto donation comes after Thailand and Myanmar were hit by a 7.7 magnitude earthquake on March 28, causing severe damage to buildings and widespread flooding.

At least 2,719 people have been confirmed dead in Myanmar and 18 in Thailand, with 76 people still unaccounted for, according to the latest figures shared by Reuters.

The $600,000 donation comes nearly a week after Zhao pledged to donate 500 BNB for the relief efforts, an initial commitment that he doubled. Cryptocurrency-based donations have emerged as a significant lifeline for the region, due to banking restrictions caused by damaged infrastructure.

Crypto donations exceeded $1 billion in 2024, spurred by increasing digital asset valuations and growing crypto regulatory clarity. About 16% of the donations went toward education, while 14% went toward medicine and health-related efforts.

The Giving Block has launched a crypto-based emergency relief effort for Myanmar and Thailand to raise $500,000 for the devastated region.

The organization expects crypto donations to reach $2.5 billion in 2025 on growing crypto wealth generation and increasing adoption due to a more favorable political landscape.

Crypto donations gain traction for emergency relief efforts

Zhao’s donation is a testament to the growing role of cryptocurrency in humanitarian aid, according to Anndy Lian, author and intergovernmental blockchain expert.

“Crypto donations, compared to traditional fiat contributions, offer unique advantages, especially in emergencies,” Lian told Cointelegraph, adding:

“Speed is a key factor—transactions on blockchain networks can settle in minutes, bypassing the delays of banks or intermediaries, which is critical when time saves lives.”

“In disaster-stricken areas like Myanmar or Thailand, where infrastructure might be compromised, crypto can reach recipients directly via digital wallets, no SWIFT codes or wire transfers required,” Lian explained.

Lian also donated 44 BNB tokens to the relief efforts in Myanmar and Thailand, a move that was publicly praised by Zhao.

Ethereum co-founder Vitalik Buterin has been known for his crypto donations. In October, Buterin donated over $180,000 in Ether to the biotech charity Kanro.

 

Source: https://cointelegraph.com/news/cz-donates-1000-bnb-thailand-myanmar-earthquake-relief

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j