Crypto Briefing approved image library
Japan’s Upper House committee has taken a significant step by approving a bill to legalize Bitcoin exchange-traded funds (ETFs) and lower cryptocurrency taxes to a flat 20%. This move marks a shift in Japan’s regulatory framework, reclassifying cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act (FIEA). The bill’s passage in the Upper House follows its approval by the Lower House and sets the stage for final approval, government promulgation, and subsequent rulemaking by the Financial Services Agency (FSA). The reclassification is expected to be implemented in fiscal 2027, which could pave the way for the first crypto ETF listings on the Tokyo Stock Exchange by late 2027 or 2028.
Market indicators suggest that this development could enhance Bitcoin’s adoption and legitimacy, potentially influencing price movements. Current prediction markets price the chance of Bitcoin reaching $200,000 by the end of 2026 as low, with YES odds around 2% across various sub-markets. However, the legislative progress in Japan could be seen as a supportive factor for future price increases, reflecting optimism about institutional capital inflows into the sector.
