FSA Seeks to Streamline Tax Filings for Trust-Based Stablecoins

Japan's Financial Services Agency (FSA) is seeking to reduce paperwork for holders of trust-based stablecoins, proposing that they no longer need to submit certain tax documents from 2027. The agency argues that these tokens are widely used and do not generate income for their holders.

The proposal would exempt issuers from filing beneficiary-by-beneficiary trust reports and calculation statements that list beneficiaries' names and income. According to a separate report, the exemption would apply once holdings cross a threshold of 1 million yen, or approximately $6,300.

The FSA's request reflects a broader effort by Japanese lawmakers to bring crypto assets under the same regulatory umbrella as traditional financial products. The proposal is part of tax reform proposals for fiscal 2027 and requires legislative approval.