Japan’s parliament is preparing to pass a new bill that will bring cryptocurrencies under the same regulatory framework as stocks. The legislation, which has already cleared the lower house, classifies crypto assets as financial instruments and introduces stricter trading rules, along with lower taxes.
Under the proposal, capital gains tax on crypto holdings such as bitcoin and ether will be reduced from a maximum of 55% to a flat 20%, aligning it with traditional stocks and bonds. The changes are expected to take effect next year after approval by the upper house.
The law also opens the door for new investment products, including crypto exchange-traded funds, as part of efforts to modernize Japan’s financial markets.
🔥 HUGE:
🇯🇵 Japan plans to regulate crypto like stocks.
This’ll be done by lowering taxes to 20% and allowing crypto ETFs. pic.twitter.com/xpV4PhtZh7
— Max Crypto (@MaxCrypto) June 11, 2026
How will regulation affect trading and market structure?
The new framework introduces stricter oversight on trading activity, including tighter rules around insider trading. Penalties will mirror those used in traditional securities markets, with fines and possible imprisonment for violations.
Japan also plans to increase penalties for unregistered crypto operators, raising the maximum prison sentence from three years to ten years. Regulators say the aim is to build a more trusted and transparent trading environment.
Officials from the Financial Services Agency said the changes are designed to support “healthy market growth” while encouraging innovation within a regulated structure.
Industry participants expect the clearer rules to attract more institutional investors while also reshaping how exchanges operate in the country.
What does this mean for Japan’s crypto market?
Japan is home to 27 registered crypto exchanges, including Binance Japan, Coincheck, and BitFlyer. Analysts say the stricter framework could lead to consolidation, with smaller exchanges struggling to meet compliance requirements.
At the same time, institutional interest is growing as Japan’s financial system moves away from years of ultra-low interest rates. The approval of yen-backed stablecoins and rising ETF discussions suggest deeper addition of digital assets into mainstream finance. The new rules are expected to redefine Japan’s crypto market structure, balancing tighter oversight with expanded access for investors.
Meanwhile, Japan’s ruling Liberal Democratic Party has advanced a new policy proposal focused on AI, blockchain finance, and tokenized payments. A major part of the proposal focuses on stablecoins and how they should be treated under Japanese law.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
