PANews reported on June 11 that, according to Bloomberg, the Japanese House of Representatives passed a bill on Thursday to reclassify cryptocurrencies as financial instruments, incorporating them into the Financial Instruments and Exchange Act (FIE) framework, subjecting them to the same rules as stocks and bonds. This move reduces the tax rate on cryptocurrency gains from the current maximum of 55% to a fixed 20%, on par with stocks and bonds, and is expected to take effect in 2028. It also strengthens restrictions on crypto insider trading, increasing the maximum penalty for unregistered crypto sellers from three to ten years. The new regulations will also open the door to crypto ETFs, with the Tokyo Stock Exchange operator expecting to list a crypto-tracking ETF as early as next year.

The bill is expected to take effect next year after passing the Senate. Japanese Financial Services Agency officials stated that the goal is to create a sound trading environment to promote innovation. Stablecoins will continue to be regulated as payment services and are not subject to the new regulations. Analysts believe the new regulations could trigger a reshuffling of the Japanese cryptocurrency exchange industry, with approximately half of the exchanges potentially disappearing.