Japan’s Cabinet approves bill to regulate crypto as financial products
Crypto Briefing
Japan's Cabinet approved a bill to reclassify cryptocurrencies as financial instruments to improve oversight, investor protection, and market transparency.Summary
The Japanese Cabinet has approved amendments to the Financial Instruments and Exchange Act, moving cryptocurrency regulation from the Payment Services Act to a framework similar to stocks and bonds. This shift aims to enhance investor protection, enforce insider trading prohibitions, and improve disclosure standards. The legislation also proposes a significant tax reform, aiming to replace progressive tax rates of up to 55% with a flat 20% rate to remain competitive with global crypto hubs like Singapore and Hong Kong. If passed, the changes are expected to take effect in fiscal 2027.
(Source：Crypto Briefing)