Japan Passes Crypto Bill: Insider Trading Ban, Tax Cut to 20%

Japan's lower house passed a bill in mid-June that would classify digital assets under the Financial Instruments and Exchange Act, introducing insider trading bans and a 20% flat tax on crypto gains, Finance Minister Satsuki Katayama said. The cabinet approved the proposal on April 10, 2026. The bill still needs upper house approval, with the full legislative process expected to wrap up in 2027.

The new framework treats cryptocurrencies as investment products rather than payment instruments. Around 105 digital assets will fall under securities-like rules, requiring token issuers to make periodic disclosures and meet stricter compliance standards. Insider trading in crypto is explicitly prohibited under the revised law.

Penalties for market misconduct are rising sharply. Maximum prison time jumps from three years to 10 years. Fines increase to 10 million yen, up from 3 million yen.