Japan's House of Representatives on 11 Jun passed a bill that moves crypto regulation from the Payment Services Act to the Financial Instruments and Exchange Act, treating tokens as financial instruments alongside stocks and bonds, according to Japan's parliamentary bill records.
Japan Lower House Passes Bill Shifting Crypto to Securities Law
12 June 2026 - 03:09 CEST
By Oihyun Kim
The Finance Committee had cleared the bill unanimously the day before, after Finance Minister Satsuki Katayama said that the bill aims to "strengthen user protection and develop a sound trading environment," citing the need to prevent fraudulent investment solicitation and ensure cybersecurity.
The bill now moves to the upper house and is expected to clear parliament before the current session ends on 17 Jul, with implementation targeted for 2027.
Exchanges renamed and reclassified
Crypto exchanges will be renamed "crypto trading businesses" and brought under Type I financial instruments regulation, the highest tier of broker-dealer oversight in Japan. Issuers of specified crypto assets must disclose information before any offering, while exchanges handling tokens such as Bitcoin (BTC) will publish basic technical and supply details.
Insider trading rules for crypto will be created for the first time, with violations punishable by up to five years in prison or fines of 5mn yen (~$33k). Penalties for unregistered operators rise from three years to 10 years.
ETF path opens
Japan Exchange Group (JPX) CEO Hiromi Yamaji told Bloomberg TV on 30 Apr that crypto-tracking ETFs could list on the Tokyo Stock Exchange as early as 2027 once legal and tax reforms are finalised. A tax overhaul taking effect in 2028 will cut the maximum rate on token gains from 55% to a flat 20%, with three-year loss carryforwards permitted.
Japan has 27 registered crypto exchanges and more than 14mn domestic crypto accounts, according to the Financial Services Agency.
