Japan's lower house has advanced a bill that would reclassify cryptocurrencies as financial instruments, marking a step closer toward stricter supervision of crypto markets.
The bill advanced after receiving approval from the House of Representatives' Finance and Financial Affairs Committee on June 10, according to parliament records. Submitted by the cabinet in April, the legislation is expected to take effect next year if approved by the upper house, the House of Councillors.
Under the proposed framework, crypto assets would be classified as financial instruments, placing them under a regulatory regime similar to that governing stocks. The change would subject the crypto sector to stricter trading rules, while paving the way for more favorable tax treatment, potentially reducing the tax rate on crypto gains from a maximum of 55% to a flat 20%, in line with stocks and bonds.
Currently, the Financial Services Agency (FSA), the country's top financial watchdog, primarily regulates crypto under the Payment Services Act, viewing it as a means of payment. The shift signals a move toward broader oversight of crypto-related businesses.
The legislative push comes as Japan's crypto industry gains momentum, particularly in the stablecoin sector. The country clarified its stablecoin regulations in 2023, with amendments to the Payment Services Act introducing the concept of "electronic payment instruments," which allows registered service providers and banks to issue and manage stablecoins.
Several players have since moved decisively. In October 2025, fintech firm JPYC Inc. announced the launch of the country's first legally recognized yen-denominated stablecoin, JPYC. In February, SBI Holdings and Startale Group unveiled JPYSC, a trust bank-backed yen stablecoin for institutional and cross-border use cases.
Japan's three banking giants — MUFG Bank, Mizuho Bank, and SMBC — also plan to begin live commercial transactions using a jointly issued stablecoin within the fiscal year ending March 2027.
SBI Shinsei Bank also plans to launch a crypto rewards program for deposit customers this fall, according to Nikkei.
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