While Bitcoin struggles to extend its recovery near the $96,000 zone, new information reveals that Japan's Financial Services Agency (FSA) has completed plans to reclassify several cryptocurrencies as financial products under the revised Financial Instruments and Exchange Act.
According to the report, the reclassification will introduce new disclosure requirements for 105 cryptocurrencies, including Bitcoin and Ethereum. Exchanges listing these crypto assets will be obligated to disclose key characteristics such as the presence of a token issuer, the underlying blockchain technology, and price volatility. The FSA also intends to implement preventive measures against insider trading, potentially prohibiting token issuers or exchange executives from trading crypto assets based on non-public information, including listing schedules.
This move represents a significant escalation in regulatory oversight of Japan's cryptocurrency market. Enhanced disclosure of asset characteristics is likely to strengthen investor confidence by providing a clearer picture of the risks and opportunities associated with specific crypto assets. The crackdown on insider trading, meanwhile, aims to foster a fairer and more transparent trading environment that reduces opportunities for abuse.
The impact of these measures will be multifaceted. On the one hand, increased transparency and reduced manipulation risks may attract institutional investors previously wary of the crypto market's limited regulatory safeguards. On the other hand, stricter rules may hinder the development of innovative blockchain projects and push capital toward more loosely regulated jurisdictions.
There is also positive news regarding tax policy: Japan is considering lowering taxes on cryptocurrencies. As these 105 crypto assets begin to be treated more like traditional financial products, authorities aim to cut the tax rate on crypto income. The current rate stands at 55%, but the plan is to reduce it to 20%.
These changes are expected to be submitted as amendments to Japan's financial legislation during the next parliamentary session in 2026.
Market outlook and trading comments
Bitcoin technical picture
Buyers are currently aiming for a return to $95,900, which would open a direct path toward $99,400, and from there it's a short step to $102,500. The most distant upside target is the $105,400 area; breaking above it would signal attempts to restore a bullish market structure.
In the event of a decline, buyer interest is expected around $92,900. A drop back below this area could quickly send BTC into the $89,200 zone, with the $86,500 region serving as the deepest downside target.
Ethereum technical picture
A confirmed hold above $3,256 opens a direct path toward $3,390. The most distant upside target is the $3,529 zone; a breakout above it would strengthen the bullish trend and signal growing buyer interest.
If Ethereum declines, buyers are expected around $3,088. A drop below this area could quickly push ETH toward $2,920, with $2,756 as the deepest target.
Chart indicators
- Red indicators represent support and resistance levels, where a slowdown or active price increase is expected.
- Green represents the 50-day moving average.
- Blue indicates the 100-day moving average.
- Light green signifies the 200-day moving average.
Crossovers or tests of the moving averages usually halt or set the market's momentum.
