Japan’s lower house of parliament has passed landmark legislation integrating cryptocurrencies into mainstream finance. The bill reclassifies digital assets as financial instruments, aligning their regulatory treatment with traditional stocks.
This shift reduces the maximum tax rate on Bitcoin and Ether gains from 55% to a flat 20%. The measure also establishes a legal framework for crypto-linked exchange-traded funds, signaling a major strategic pivot for Tokyo.
The bill is expected to clear the upper house and take effect next year, with tax reforms scheduled for implementation in 2028. Proponents argue this provides essential regulatory certainty for institutional investors.
However, the legislation introduces stricter insider trading restrictions and higher penalties. Industry participants warn that increased compliance burdens may force smaller exchanges out of the market as Japan tightens its oversight regime.