Japan's Financial Services Agency (FSA) is evaluating a proposal to slash taxes on cryptocurrency profits by 50%. This initiative aims to create a more favorable regulatory environment for digital assets, reducing the current tax rate on crypto gains, which can reach up to 55%. The proposed tax reduction is part of a broader strategy to attract Web3 businesses and investors, positioning Japan competitively against nations like Singapore and the UAE. If approved, the tax cut could be implemented as early as the next fiscal year, potentially boosting domestic Web3 development and retaining local talent.