Japan's Financial Services Agency is poised to commence a review of its rules for the cryptocurrency sector over the coming months, according to a Monday media report, potentially paving the way for lower taxes on digital assets,

Japan is set to begin a review of the nation’s cryptocurrency rules, opening up the possibility of lower taxes on digital assets and potentially paving the way for the roll out of domestic funds investing in tokens.

Japanese regulators will review the nation’s cryptocurrency regulations, which could lead to tax cuts for the sector and make way for the launch of crypto exchange-traded funds (ETFs) in the nation.

Japan is set to review its rules for the crypto sector, Bloomberg reported on Monday. It will assess whether or not the nations approach of regulating crypto under the payments act is affective.

Japan plans to review crypto regulations, potentially 35% taxes reduction on digital assets and allowing domestic funds to invest in tokens.