Japan’s parliament passed a bill in the Lower House on June 11 to bring cryptocurrencies under the same regulatory framework as stocks, classifying crypto assets as financial instruments subject to lower taxes and stricter trading rules [1, 2, 3]. The legislation is set to take effect next year after being approved by the Upper House [1, 2, 3].
The bill will reduce the capital gains tax on cryptocurrencies such as bitcoin and ether from the current 55% to a 20% flat rate starting in 2028, aligning crypto with stocks and bonds [1, 2]. It also tightens restrictions on crypto insider trading, imposing fines and imprisonment comparable to those for listed securities [1, 2].
Punishments for unregistered crypto sellers will increase significantly, with the maximum imprisonment rising from three years to ten years [1, 2]. As of April 1, Japan has 27 registered cryptocurrency exchange providers, including Binance Japan, Coincheck, and BitFlyer [1].
Masato Yoshizawa of the Financial Services Agency said, "We aim to foster more innovation by creating a sound trading environment. We’re not necessarily giving crypto a stamp of approval, but we’re aiming for healthy market growth" [1]. Koichi Kano, Japan head at QCP Group, noted the clarity the regulations bring: "Until now, crypto was like football — it was interpreted differently by different people. Now, we all know that we’re playing American football, and we all need a helmet" [1]. Hinza Asif, president of the Asia Web3 Alliance, said the strong enforcement will "create a high-trust ecosystem" [1].
In parallel efforts to integrate blockchain-based finance, Japan’s three largest banks plan to jointly issue stablecoins by March 2027 and have formed a council to prepare for their issuance [4]. The Financial Services Agency continues to support blockchain experiments to enhance payment systems [4]. Japan approved the first yen-backed stablecoin in 2025 [2].
