Japan's Financial Services Agency is moving to ease restrictions on cryptocurrency investments, signalling a major shift in regulatory policy. The agency is preparing to lift the existing ban on crypto exchange-traded funds (ETFs), bringing Japan in line with markets like the United States and Hong Kong. In addition, cryptocurrencies may soon be treated similarly to traditional securities, paving the way for wider institutional adoption.

The regulator is also considering significant tax cuts, potentially lowering the maximum rate from 55% to 20%. Meanwhile, efforts are underway to strengthen investor protections by requiring virtual asset firms to provide greater transparency. A closed-door study session with market experts will assess whether Japan's existing regulatory framework can support these changes.

Despite the easing stance, Japan's financial authorities remain cautious, enforcing strict compliance measures to clamp down on unlicensed crypto operations. Recently, the FSA ordered Google and Apple to remove unregistered exchanges from their platforms. As Japan adapts to the global shift towards Bitcoin, its evolving policies could reshape the country's crypto landscape in the coming years.