Japan passes law classifying crypto as financial assets

Japan's parliament has taken a decisive step toward integrating digital assets into its mainstream financial system by passing landmark legislation to regulate cryptocurrencies like stocks. The lower house approved the bill on Thursday, June 11, 2026, setting the stage for a comprehensive new framework expected to take effect next year.

The legislation reclassifies cryptocurrencies such as Bitcoin and Ether as financial instruments, placing them under the same regulatory umbrella as traditional securities. A central component of the reform is a significant reduction in the tax burden for investors. The capital gains tax on crypto profits will be lowered from a current maximum rate of 55% to a flat rate of 20%, aligning it with the taxation of stocks and bonds. This change is scheduled to come into force in 2028.

Officials framed the move as an effort to foster innovation within a clear and secure trading environment. A representative for the Financial Services Agency's policy and markets bureau stated the aim is healthy market growth by creating a sound trading environment, while clarifying that the action does not constitute an official endorsement of crypto assets. Industry...