Japan passes bill to classify crypto as financial product

Japan's House of Representatives has passed a bill to classify cryptocurrencies as financial products, similar to stocks, which will lower the tax rate to a flat 20% starting in 2028, Bloomberg reported. Under current law, crypto profits in Japan are taxed at a maximum rate of 55%. The amendment also introduces penalties for crypto insider trading comparable to those for listed stocks and significantly increases punishments for unregistered crypto sellers. Once the amendment is enacted next year, the Japan Exchange Group (JPX) will be able to pursue listings for crypto ETFs, including those for BTC and ETH. This development could diminish the standing of companies like Metaplanet, which hold large amounts of cryptocurrency. Additionally, there is speculation that many of Japan's 27 smaller registered exchanges could face restructuring.