Japan Shifts Crypto into Financial-Market Framework with Lower Tax Rates

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

The proposed changes would move crypto assets closer to the regulatory treatment of stocks and bonds by subjecting them to stricter trading rules. This could potentially lower the capital gains tax on crypto assets like Bitcoin (BTC) and Ether (ETH) from a maximum of 55% to a 20% flat rate, in line with stocks and bonds.

The bill would also introduce stricter regulations on crypto exchanges, including disclosure requirements for issuers of certain assets. The shift could open the door to crypto-tracking ETFs in Japan, giving local investors a regulated route to digital asset exposure.