Japan’s Financial Services Agency (FSA) submitted a request to exempt trust-type stablecoins from mandatory tax filings starting in fiscal year 2027.
Japan’s FSA urged regulators to exempt trust-type stablecoins from submitting beneficiary-by-beneficiary trust reports and calculation statements that include the beneficiaries’ names and income, as part of its tax-reform request for the new fiscal year, issued on Saturday.
The agency argued that trust-type stablecoins circulate among a broad number of users, are used for frequent and numerous transactions and that users can not earn income from holding these assets.
Subject to legislative approval, the tax exemption could apply to trust-type stablecoins starting April 1, 2027, the beginning of Japan’s fiscal year 2027.
The country’s lawmakers have been moving closer to bringing crypto under the same umbrella as traditional financial assets, an intent first signaled by Finance Minister Satsuki Katayama in January.
In July, Japan’s parliament passed revisions that classify crypto assets as financial assets under the country’s Financial Instruments and Exchange Act (FIEA).
Related: Laser Digital gets Japan’s first crypto exchange approval in 4 years
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