Willy Woo: Japan classifying Bitcoin as a financial product will stimulate buying demand

Foresight News reported that analyst Willy Woo commented on "Japan will classify bitcoin as a financial product this year," stating, "Japanese people will have more incentive to buy bitcoin. Classifying bitcoin as a financial product means that bitcoin gains (or trades) will be taxed at a rate of 20%, instead of the marginal income tax rate (which is 43-55% if annual income exceeds $57,000). Metaplanet will lose its tax arbitrage advantage compared to self-custody of bitcoin. Approximately 110 cryptocurrencies are also included, and staking rewards will be taxed at the marginal rate."

According to previous Foresight News reports, the Financial Services Agency of Japan may launch cryptocurrency regulatory reforms in April 2026, which will redefine the categories of crypto tokens such as bitcoin and ethereum, possibly classifying them as financial products.