Japan's lower house has advanced a bill that would reclassify cryptocurrencies as financial instruments, marking a step closer toward stricter supervision of crypto markets.
The bill advanced after receiving approval from the House of Representatives' Finance and Financial Affairs Committee on June 10, according to parliament records. Submitted by the cabinet in April, the legislation is expected to take effect next year if approved by the upper house, the House of Councillors.
Under the proposed framework, crypto assets would be classified as financial instruments, placing them under a regulatory regime similar to that governing stocks. The change would subject the crypto sector to stricter trading rules, while paving the way for more favorable tax treatment, potentially reducing the tax rate on crypto gains from a maximum of 55% to a flat 20%, in line with stocks and bonds.
Currently, the Financial Services Agency (FSA), the country's top financial watchdog, primarily regulates crypto under the Payment Services Act, viewing it as a means of payment. The shift signals a move toward broader oversight of crypto-related businesses.
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