Japan’s parliament poised to pass sweeping bill to regulate crypto like stocks
Japan is moving to treat cryptocurrencies more like financial securities than just payment tools. The House of Representatives passed a bill shifting crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act. The Financial Services Agency says the change reflects crypto’s growth as a mainstream investment, with more than 14 million open accounts and heavy participation from lower- and middle-income retail users. If enacted next year, the rules would classify crypto as a financial instrument, likely lowering taxes while imposing stricter trading and disclosure requirements. The framework could also enable crypto ETFs. It includes stock-style insider trading bans, tighter public disclosure rules for token projects, and a 2 million yen investment cap for some retail buyers if no independent audit is obtained. Enforcement against illegal operators would also intensify, with prison terms for unregistered crypto businesses rising to 10 years and higher fines.
