Japan has taken an official step to recognize cryptocurrencies as financial assets. This legislative shift marks a departure from the previous classification of "payment instruments" under the Payment Services Act, as oversight has been transferred to the more stringent Financial Instruments and Exchange Act.

This move is not merely a semantic change but a strategic maneuver by the Japanese government to integrate digital assets into the traditional financial system. The goal of this transition is to enhance investor protection, encourage institutional entry, and implement fundamental reforms to one of the world's most controversial cryptocurrency tax systems.

Cryptocurrency news in Japan: A new status for digital currencies
Regarding the fundamental development: Yes, the Japanese Cabinet has approved a bill to reclassify 105 cryptocurrencies, including Bitcoin and Ethereum, as financial assets.
This law is expected to be passed by the Japanese Parliament (the Diet) during the second quarter of 2026, with full implementation beginning in early 2027.