Japan is set to review its cryptocurrency regulations, with the Financial Services Agency (FSA) leading the assessment. The review aims to evaluate the effectiveness of the current approach under the payments act and may lead to significant changes, including potentially lower taxes on digital assets. Major traditional companies such as NTT and SBI have entered the crypto space, indicating the growing impact of Japan's clear and well-defined crypto regulations. Bloomberg reported that the review could also reclassify cryptocurrencies as financial instruments under investment law, which would strengthen protections and allow domestic funds to invest in tokens.