Japan Aligns Crypto Regulation With Securities Markets

Japan is integrating cryptocurrency regulation more closely with its traditional financial markets, emphasizing that digital assets should be handled through established exchanges and securities-style oversight. Finance Minister and Financial Services Minister Satsuki Katayama stated that exchanges and market infrastructure are essential for citizens to benefit from blockchain assets, framing 2026 as Japan's year of full-scale digitalization. This regulatory shift involves moving crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act, treating crypto as financial products subject to securities regulations like stronger disclosure and insider trading prohibitions. Furthermore, tax policy is aligning crypto profits with stocks via a proposed flat 20% tax, replacing a system that could reach 55%. This standardization effort has already led to enforcement actions, such as requesting app stores remove unregistered exchange apps, pushing platforms like Bybit to phase out services for Japanese residents.

(Source：Cointelegraph)