TLDR Tech / Crypto
Japan Passes Bill Cutting Tax From 55% to 20%
Japan's House of Representatives passed a bill reclassifying crypto assets as financial instruments under the Financial Instruments and Exchange Act, shifting oversight from the Payment Services Act and treating digital assets more like equities. The legislation, set to take effect in 2027, would cut the crypto tax rate from 55% to 20%, aligning it with traditional securities, and create a pathway for domestic crypto ETFs. The bill also imposes stock-style insider trading prohibitions, stricter disclosure requirements, and investment caps on unaudited token offerings, while raising maximum penalties for unregistered crypto businesses from three to ten years imprisonment and fines to 10 million yen. Japan's stated policy rationale centers on fostering innovation and meeting rising domestic and international demand for digital asset services.
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