TechFlow News, July 16. According to CoinDesk, the Japanese parliament passed a bill to reclassify cryptocurrencies as financial instruments, shifting them from a payment framework to an investment framework, with new regulations expected to take effect in 2027. The bill paves the way for Bitcoin spot ETFs, while increasing the maximum prison sentence for unregistered crypto operators from 3 years to 10 years, raising the fine cap from 3 million yen to 10 million yen, and introducing stricter insider trading rules.
The bill also approves a tax reduction plan lowering the cap on cryptocurrency income tax from a maximum of 55% to 20%, with the new tax rate expected to be implemented in 2028, comprising 15% levied by the national government and 5% by local authorities. New regulations require crypto issuers to disclose information regularly, and exchanges must comply with stricter investor protection and reporting requirements.
