Japan is preparing to pass legislation to elevate cryptocurrencies to the status of financial instruments like stocks, paving the way for ETFs and reducing taxes on capital gains from Bitcoin and Ethereum from a maximum of 55%.
June 11, 2569 at 13.14:XNUMX a.m. Bloomberg News reported that The Japanese parliament is preparing to pass a new law that will elevate the regulation of digital assets, bringing them under the same framework as the stock market. This represents a significant change that could help expand access to cryptocurrency investments for both retail and institutional investors.
The bill passed the House of Representatives on Thursday and is awaiting approval from the Senate. It is expected to come into effect in 2570.
Under the new law, digital assets like Bitcoin and Ethereum will be classified as financial instruments, just like stocks and bonds. This will result in greater tax benefits, while also requiring stricter trading regulations and opening the door for the issuance of new investment products, such as cryptocurrency-backed ETFs.
This amendment to the law comes amid continued and growing interest in digital assets in Japan, from both institutional and retail investors, further boosted by President Donald Trump's pro-crypto stance in the United States.
Japan Financial Services Agency (FSA) specify that The goal of the new law is to create a trustworthy trading environment conducive to innovation. This doesn't mean the government is directly supporting cryptocurrencies, but rather that it wants the market to grow stably.
One of the key aspects of the legislation is to reduce the tax rate on capital gains from crypto investments from the current maximum of 55% to just 20%, equivalent to investments in stocks and bonds. This is expected to take effect in 2571.
Crypto industry entrepreneurs view the legislation as providing long-awaited clarity and a significant step toward wider acceptance of digital assets.
Increased penalties for insider trading open the door for crypto ETFs.
The bill also strengthens controls on insider trading in the cryptocurrency market, imposing penalties including imprisonment and fines similar to those in the stock market. Furthermore, it increases the maximum penalty for unlicensed cryptocurrency trading service providers from three years in prison to ten years, in order to enhance the market's credibility.
For stablecoins, the new law will not cover them as they remain under the existing Payment Services Act. However, for assets like Bitcoin, the law will open up opportunities for the establishment of cryptocurrency-referenced ETFs in the future.
Japanese stock exchange operators expect crypto ETFs could begin trading as early as next year.
Japanese megabanks are aggressively pursuing stablecoins.
Japanese financial institutions' interest in digital assets has increased significantly in recent years, following the emergence of the Japanese economy from decades of deflation and low interest rates.
Last November, three of Japan's largest banks jointly launched a stablecoin development project with support from the FSA. This comes as Japan approves its first yen-backed stablecoin issuance in 2025, with cumulative issuances already exceeding 3.8 billion yen.
The Japanese cryptocurrency market is expected to enter an era of screening.
However, stricter regulations could result in stricter screening of businesses in Japan's cryptocurrency industry.
Experts believe that larger companies will be able to absorb the burden of stricter disclosure and auditing requirements, while smaller businesses may face costs that are too high to bear.
Currently, Japan has 27 licensed digital asset trading platforms, including Binance Japan, Coincheck, and BitFlyer.
Some analysts estimate that if the new regulations are fully implemented, up to half of the cryptocurrency service providers in Japan could disappear from the market due to the significantly increased regulatory burden.
refer : www.bloomberg.com
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