Japan Brings Crypto Assets Under Financial Framework

Japan's Lower House has reportedly passed a bill that brings crypto assets under the country's financial instruments framework, potentially paving the way for exchange-traded funds (ETFs) and lower tax treatment.

The legislation would subject crypto assets to stricter trading rules, similar to those applied to stocks and bonds. This change could lower the capital gains tax on digital assets like Bitcoin (BTC) and Ether (ETH) from a maximum of 55% to a flat rate of 20%, in line with securities.

The bill is expected to take effect next year after going through the Upper House, with the proposed tax changes set to kick in by 2028. The shift could also open up regulated routes for local investors to gain digital asset exposure beyond crypto exchanges and listed companies with token holdings.