Japan's Financial Services Agency (FSA) is set to propose a reclassification of 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act. This reclassification would introduce a 20% tax cap on trading profits, significantly reducing the current maximum rate of 55%. Additionally, the proposal includes implementing insider trading restrictions to enhance market integrity. The FSA's initiative aims to align Japan's regulatory framework with international standards and foster greater institutional participation in the cryptocurrency market. The proposal is expected to be submitted to parliament by 2026, marking a significant shift in Japan's approach to cryptocurrency regulation.