Japan reclassifies crypto as a financial asset, paves way for tax cuts
Japan has passed legislation to reclassify cryptocurrency as a financial asset, a move that paves the way for future spot crypto ETFs and significant tax reductions by 2028. The new law also introduces stricter regulatory oversight, including harsher penalties for unregistered operators and enhanced disclosure requirements.
The legislation approved by Parliament on Wednesday amends the Financial Instruments and Exchange Act and the Payment Services Act (PSA). It shifts crypto from a framework in which it was primarily treated as a payment tool to one that treats it as an investment alongside other financial instruments. The new rules are expected to take effect in 2027.
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