The Japanese Senate passed an amendment to the "Financial Instruments and Exchange Act," officially classifying crypto assets as financial products

According to CoinPost, the Japanese Senate plenary session today passed and established the "Amendment to the Financial Instruments and Exchange Act and the Fund Settlement Act," redefining crypto assets from a means of payment to financial products. Key revisions include: the renaming of crypto asset exchange operators to crypto asset trading operators, increasing the maximum prison term for unregistered sales from under 3 years to under 10 years, and raising fines from under 3 million yen to under 10 million yen; the introduction of regulations against insider trading in crypto assets for the first time, prohibiting trading based on undisclosed important information; and requiring specific crypto asset issuers to disclose information regularly every year.

In terms of taxation, it shifts from a maximum comprehensive tax rate of 55% to a separate declaration tax (approximately 20%), allowing losses to be carried forward for 3 years, expected to be implemented from January 1, 2028. The bill also provides a framework for the establishment of crypto asset ETFs, with the Japan Exchange Group expected to promote ETF listings around 2027. After the bill's passage, the next focus will shift to the formulation of specific rules such as government orders and supervisory guidelines, including reserve levels and derivative leverage limits. Compliance costs may pose pressure on small and medium-sized exchanges, but the entry opportunities for asset management companies and banking insurance institutions will expand.