Japan's Financial Services Agency (FSA) is set to reclassify 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products under the Financial Products Transaction Act. This reclassification aims to align cryptocurrency tax rates with those of stock trading, potentially reducing the current 55% tax on crypto gains to a flat 20% rate. In addition to tax adjustments, the FSA is contemplating the introduction of new insider trading restrictions within the domestic crypto industry. These regulatory changes are part of Japan's broader efforts to integrate cryptocurrencies into its financial system while ensuring market integrity and investor protection.