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Japan's Crypto Bill Passes Lower House, ETFs in Sight
Japan's lower house passed a bill shifting crypto regulation to financial-instruments law, cutting taxes and opening the door to ETFs. The FSA cited 14 million accounts and retail-driven growth.
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Japan's House of Representatives passed a bill Thursday that shifts crypto regulation from the Payment Services Act to the Financial Instruments and Exchange Act, the Financial Services Agency said. The move treats digital assets like stocks and other financial investments rather than just a payment method.
The FSA attributed the shift to crypto becoming a mainstream investment asset. Japan now has more than 14 million open crypto accounts, according to data the agency cited. Low- to middle-income retail users are driving that growth – people earning under 7 million yen ($43,600) a year account for roughly 70% of those accounts.
The new rules, expected to take effect next year, classify crypto assets as financial instruments, subjecting them to lower taxes and stricter trading rules. The change also opens the door to new products like exchange-traded funds. "Crypto-ETFs would provide investors with easy-to-understand ways of investment," the ruling Liberal Democratic Party said recently.
"Our framework intends to improve user protection while remaining mindful of promoting innovation, given that crypto assets are increasingly positioned as investment targets for both domestic and foreign investors," the FSA said in a statement.