Japan's Financial Services Agency issues tax reform requirements for fiscal year 2025, mentioning virtual currency transactions for the first time

Japan's Financial Services Agency has published requirements for tax reform for fiscal year 2025, including regulations on cryptoassets (virtual currencies). The "Asset Return Multiplication Plan and the Realization of Asset Management Countries" section of the reform plan mentions the tax treatment of virtual currency transactions for the first time, discussing whether virtual currencies should be treated as financial assets.
The request for tax reform was submitted by various government agencies and will be considered by the ruling party's tax investigation committee and parliament. Although the request for amendment has been submitted, no final decision has been made. There have been calls for tax reform for virtual currency companies over the past two years, and this reform specifically mentions the tax treatment of virtual currency transactions for the first time.