Coin World News: A committee of the Japan’s House of Councillors has just approved the reclassification of cryptocurrencies as financial instruments. Under the Financial Instruments and Exchange Act (FIEA), this law also applies to stocks and bonds, meaning cryptocurrencies will no longer be regulated under the Payment Services Act. Although a full vote has not yet been held, since the Liberal Democratic Party controls both chambers, it is expected to pass easily. The Cabinet approved the draft in April, and the House of Representatives passed it in June. At this stage, the progress indicates that once it takes effect, the crypto tax rate will be lowered from the highest nearly 55% progressive tax rate to a fixed tax rate of 20%, although this portion will not take effect until 2028. The goal of the FIEA reclassification is for fiscal year 2027, and it removes legal barriers for spot crypto ETFs on the Tokyo Stock Exchange, which are expected to be listed by the end of 2027 or in 2028. In addition, the bill introduces new insider-trading prohibitions, mandatory annual disclosures for issuers, and stricter penalties for unlicensed operators, with a maximum of up to 10 years in prison and a fine of 10 million yen, whereas the current maximum prison sentence is 3 years. Japan currently has more than 13 million crypto accounts, and its high tax rate has long been seen as a reason for weak trading volumes relative to its level of technological adoption.

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SushiChef

· 6h ago

Insider trading carries up to ten years in prison; with regulatory tightening running in parallel with tax cuts, can Japan’s balancing act work?

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MemeTransporter

· 6h ago

Exiting the Payment Services Act and switching to the FIEA increases compliance costs, but institutions’ funds are still willing to come in

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OldBroker

· 6h ago

A 20% fixed tax rate has finally arrived—Japan is about to reclaim its position as Asia’s crypto hub.

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FlowState

· 6h ago

13 million accounts have held back for so long—high tax burdens are indeed a hard constraint; looking forward to trading volume taking off.

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TGBot

· 6h ago

In 2027, spot ETFs—more aggressive than the US? The Tokyo Stock Exchange may be in for a change

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A committee of Japan’s House of Councillors has approved the reclassification of cryptocurrencies as financial instruments.

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