Japan's lower house of parliament has approved a significant legislative measure that reclassifies crypto assets under the Financial Instruments and Exchange Act, moving them away from the Payment Services Act. This new framework aims to impose stricter regulations on trading, including prohibiting insider trading practices.
Pending approval from the upper house, this law is projected to come into effect in 2027. Additionally, these regulatory changes may facilitate a reduction in the income tax on crypto transactions to 20% and potentially lead to the introduction of exchange-traded funds (ETFs) for cryptocurrencies.
