Japan and Taiwan Look To Advance in Crypto Regulations

• Taiwan permits professional investors to engage in foreign virtual asset ETFs.
• Japan considers a significant tax reduction on crypto gains from 55% to 20%.
• Major firms like Sony and MUFG are actively exploring blockchain applications.

Japan and Taiwan have introduced innovative regulatory developments in the financial ecosystems. Both countries are updating their crypto regulations to make the digital asset market more inviting and secure for investors.

In Taiwan, big changes are afoot thanks to the Financial Supervisory Commission (FSC). They’re now allowing professional investors to diversify their portfolios with foreign virtual asset ETFs. This decision comes after deep discussions about the risks that come with these investments. 

Only well-versed investors like institutional entities and individuals with hefty assets can take part in these opportunities. To keep everything above board, Taiwanese securities firms must make sure these investments fit the investor’s profile perfectly. They’re also tasked with keeping investors well-informed with detailed product info and regular updates on virtual assets.

Meanwhile, Japan is not staying behind. They’re looking at a game-changer – a big tax cut on crypto gains. By rethinking how crypto tokens are classified—shifting them from the Payments Act to the Financial Instruments and Exchange Act—taxes could plummet from a whopping 55% down to just 20%. This isn’t just about keeping more money in investors’ pockets. It could open the door to crypto ETFs, offering diverse ways to engage with the market.

Additionally, major companies like Sony and Mitsubishi UFJ Financial Group are exploring how blockchains can scale or help their businesses. Sony is considering blockchain for various applications, while MUFG is looking into issuing stablecoins. They’re keen on blending traditional business with new digital twists.

Mitsubishi UFJ Trust and Banking (MUTB), which is a subsidiary of Japan’s biggest financial institution, Mitsubishi UFJ Financial Group, has partnered up with Binance Japan to explore the creation and use cases of new stablecoins. These stablecoins are expected to include the backing of Japanese yen and US dollars.

Both Japan and Taiwan are creating the environment for room to innovate in the crypto space. They’re tweaking their rules not just to increase their security levels but also to support a climate ripe for growth and innovation. It’s a great time for investors and companies as their government is showing interest in tapping into the potential of digital assets.

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