Japan is promoting the reclassification of cryptocurrencies as financial instruments

According to market news, Japan is reclassifying cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act, similar to the framework for stocks and bonds. The House of Representatives has passed the bill. It lowers the tax rate on cryptocurrency gains from a maximum of 55% (miscellaneous income) to a unified 20% capital gains tax rate and opens the door for cryptocurrency ETFs, with related regulations set to take effect in 2027.