Shiba Inu (SHIB) has secured a coveted spot on Japan’s “Green List” of approved crypto assets, a move that signals formal regulatory acceptance and positions the token to benefit from a sweeping government proposal to slash crypto taxes.
The designation places Shiba Inu alongside Bitcoin and Ethereum in a trusted regulatory category, making it a prime candidate for a plan by Japan’s Financial Services Agency (FSA) to cut the tax on crypto gains from a high of 55% to a flat 20%.
Understanding Japan’s Two-Tier Regulation
SHIB’s position is the result of Japan’s dual regulatory structure. The Japan Virtual and Crypto assets Exchange Association (JVCEA), a self-regulatory body of exchanges, maintains the Green List.
This list acts as a regulatory “fast-pass,” allowing member exchanges to list approved tokens without a lengthy screening process. Shiba Inu’s inclusion confirms it has met strict criteria, including listing on at least eight member exchanges.
The Financial Services Agency (FSA) is the official government regulator that sets tax policy. Its proposal to reclassify 105 assets is separate from the JVCEA’s process, but the 30 tokens on the Green List are widely expected to be the first to receive approval. This two-tier approach ensures that only thoroughly vetted assets gain full market access and tax benefits.
New Framework Treats SHIB Like a Stock
The financial implications for Japanese investors are stark. Currently, crypto profits are taxed as “miscellaneous income” at a rate up to 55%.
The FSA’s proposal would grant the 105 approved assets tax parity with stocks, applying a flat 20% capital gains tax. This reform package extends beyond taxation.
It also includes proposed rules to combat insider trading by applying standards similar to traditional securities markets. These market integrity measures represent an explicit acknowledgment that the FSA intends to treat approved tokens as legitimate investment vehicles, not speculative instruments.
The timeline for implementation points to early 2026. The FSA is expected to present its requests during budget proceedings, with a target effective date of April 1, 2026, for the new fiscal year.
Finance Minister Katsunobu Kato confirmed in February 2025 that regulators are finalizing the proposal, a move supported by Prime Minister Shigeru Ishiba, who has called crypto development “extremely important” for Japan’s economy.
Chain Street’s Take
SHIB’s inclusion on the JVCEA Green List confirms it has met Japan’s vetting criteria alongside assets like Bitcoin and Ethereum. Separately, a proposal from Japan’s FSA seeks to reclassify 105 crypto assets, including SHIB, as financial products.
This would change their tax treatment from a maximum 55% miscellaneous income rate to a flat 20% capital gains rate.
The two systems are distinct: the JVCEA’s Green List governs exchange access, while the FSA’s proposal governs tax classification. Key uncertainties remain, including the final approval timeline, the exact number of assets in the final legislation, and the framework’s implementation details.
If approved, the framework would officially treat established crypto assets as financial products. The next key development is expected during Japan’s budget proceedings in early 2026.
