Japan's lower house passed a bill on Thursday that reclassifies cryptocurrencies as financial instruments under the country's securities framework, clearing a path to regulated spot ETFs and a flat 20% capital-gains tax.
The legislation amends the Financial Instruments and Exchange Act (FIEA), shifting crypto out of the Payment Services Act and into the same legal framework that governs stocks, bonds, and investment trusts, according to Bloomberg. The bill heads next to the upper house, where passage is widely expected. One key caveat: the reform is not yet law.
Japan's current crypto framework treats digital assets as payment instruments, which means they sit under a lighter disclosure and protection regime than traditional securities. Under the FIEA, crypto issuers would face the same disclosure obligations, custody standards, and insider-trading rules that apply to listed equities.
Representatives of the Tokyo Stock Exchange indicated that crypto ETFs could begin listing as early as 2027 once the framework is finalized. Japan's major securities houses are already positioning: SBI Securities and Rakuten Securities have said they plan to offer crypto investment trusts once regulators finalize rules, with 11 additional firms including Nomura, Daiwa, and Mizuho indicating they would consider entering the market.
