Japan’s Cabinet approved a bill that classifies cryptocurrency as a financial product, marking a major step toward integrating digital assets into its mainstream financial system.

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. 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 is expected to take effect in the 2027 fiscal year. The change is also set to lower the tax rate on crypto profits from a maximum of 55% to 20%, aligning it with equivalent #Write2Earn #bullish $ENJ $BTC