TLDR Tech / Crypto
Japan passes key bill recognizing crypto as financial product
Japan's parliament passed amendments to the Financial Instruments and Exchange Act reclassifying crypto as a financial product similar to stocks and bonds rather than a payment method, adding insider-trading prohibitions, mandatory issuer disclosures, and prison terms up to ten years for unregistered operations. The reform sets up separate crypto taxation at an effective ~20% rate (down from up to 55%) with three-year loss carry-forwards, taking effect around January 2028, and lays groundwork for domestic spot crypto ETFs, which the Japan Exchange Group is eyeing as early as 2027.
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