Japanese lawmakers passed a landmark crypto bill classifying digital assets as a financial product.
- Cryptocurrencies are shifting from a payments-focused regime to an investment framework under amended financial and payments laws set to take effect in 2027.
- The legislation paves the way for potential spot bitcoin ETFs, increases penalties for unregistered crypto operators, and imposes stricter insider-trading, disclosure, and investor-protection rules on issuers and exchanges.
- Lawmakers also approved a plan to cut the top tax rate on crypto income from as high as 55% to a flat 20% starting in 2028.
This legislation establishes the legal framework for separate taxation of crypto assets and for future crypto exchange-traded funds (ETFs).
