Japan's Lower House Passes Bill to Regulate Crypto Like Stocks

Japan's lower house passed a bill Thursday reclassifying cryptocurrency under securities law, Bloomberg reported. The legislation moves digital assets out of the Payment Services Act and into the Financial Instruments and Exchange Act, the same framework governing stocks and bonds. The bill now heads to the upper house, where passage is widely expected, with implementation due within roughly a year, targeting fiscal 2027.

Tokyo Stock Exchange representatives said ETF trading could begin as soon as 2027 if the bill becomes law. The 2026 Tax Reform Outline calls for a flat 20% tax on crypto gains, replacing a progressive rate that can reach 55%, with the change expected in 2028.

Stablecoins are excluded from the reclassification and stay under the Payment Services Act as electronic payment instruments. The same week, MUFG and its two largest rivals announced plans for joint stablecoin transactions.

The legal shift imposes disclosure obligations and custody standards on exchanges. Insider-trading enforcement also applies under FIEA, with exchanges required to segregate client assets and file suspicious activity reports. Exchanges must also disclose details on each of the 105 tokens approved for domestic trading.

Masato Yoshizawa, a representative from Japan's Financial Services Agency, told Bloomberg the goal is to "foster more innovation by creating a sound trading environment." Finance minister Satsuki Katayama framed the measure as expanding the supply of growth capital while ensuring market fairness, transparency, and investor protection. Implementation is targeted for fiscal 2027, with the tax change expected in 2028.