Japan Classifies Crypto as Financial Assets, Sets Stage for Institutional Adoption

Japan's National Diet passed an amendment to the Financial Instruments and Exchange Act on July 15, reclassifying cryptocurrencies as financial assets.

The law removes them from the Payment Services Act and imposes securities-grade insider-trading rules and disclosure obligations.

A companion tax proposal would cut Japan's maximum crypto income tax from 55% to a flat 20.315%, effective January 2028, aligning with rates applied to equities.

According to onchain data, roughly 11.2 million BTC currently sit in profit against 8.2 million at a loss, but each dip toward $60,000 tips supply into loss dominance.