Japan’s Cabinet approved a bill that classifies cryptocurrency as a financial product, marking a major step towards integrating digital assets into its mainstream financial system. The change would also lower the tax rate on crypto profits from a maximum of 55% to 20%, aligning it with equities.
Japan’s Cabinet Passes Bill Recognizing Crypto as Financial Product: Nikkei
12 April 2026 - 12:08 CEST
By Sandmark staff
The Cabinet passed an amendment to the Financial Instruments and Exchange Act on 10 Apr, reclassifying crypto to be regulated as financial products and shifting oversight from the Payment Services Act, Nikkei reported. This subjects digital assets to the same investor protection and transparency rules as traditional assets, including a ban on insider trading based on non-public information.
Cryptocurrency issuers must make annual financial disclosures. If the bill clears the current Diet session, the new law would take effect in the 2027 fiscal year.
