Japan regulates crypto assets as financial instruments

The Japanese Cabinet has amended the Financial Instruments and Exchange Act to classify crypto assets as financial instruments, moving them from a payment method classification to the same category as stocks. This reclassification brings with it insider trading bans and annual disclosure requirements for cryptocurrency issuers. The move aims to enhance market fairness, transparency, and investor protection, reflecting the increasing institutional investment in crypto. Fines and sentences for unregistered crypto exchanges have also been increased under the amendment. Japan is also planning to legalize crypto exchange-traded funds (ETFs) by 2028 and has previously backed plans to reduce the maximum tax rate on crypto profits to a flat 20%.

(Source：Cointelegraph)