Japan has taken a significant step towards integrating cryptocurrencies into mainstream finance with the passage of landmark legislation in parliament.
The lower house of parliament approved a bill that would regulate digital assets, such as Bitcoin and Ether, in the same way as stocks. This means gains on these assets would be taxed at a flat 20% rate instead of the current maximum of 55%, starting from 2028.
The legislation also creates a pathway for crypto-linked exchange-traded funds and strengthens enforcement through tougher insider trading restrictions and higher penalties for violations.
Supporters argue that this regulatory certainty will encourage more Japanese investors and financial institutions to participate in the digital asset market, which is growing rapidly.