- Japanese lawmakers have approved the bill reclassifying cryptocurrency.
- Crypto will be considered a financial instrument in Japan, similar to stocks and bonds.
- Japan has proposed cutting crypto taxes from as high as 55% down to a flat 20%.
Japan’s Upper House committee has approved the bill reclassifying cryptocurrency as a financial instrument. It implies that the world’s fourth-largest economy has categorized crypto in the same way as stocks and bonds.
Bill Set for “Formality” Voting
It is worth noting that the same bill has already passed the Lower House. Therefore, an upcoming full chamber vote is expected to be a formality, given the ruling party’s legislative control.
Japan’s new financial reform will take effect in fiscal 2027, with Bitcoin ETFs potentially listing on the Tokyo Stock Exchange by late 2027 or in 2028. Meanwhile, the Asian giant has proposed cutting crypto taxes from as high as 55% down to a flat 20%, matching stock market rates.
Crypto community members and participants in the broader financial sector consider the latest development a shift in Japan’s regulatory framework. In addition to the bill passing by both Houses, the process has set the stage for final approval, government promulgation, and subsequent rulemaking by the Financial Services Agency (FSA).
A Potential Boost for Bitcoin Demand
Typically, such moves by global economic giants suggest a potential boost in the adoption and legitimacy of Bitcoin and cryptocurrency. Industry experts expect Japan’s latest approval to influence crypto price movements, particularly Bitcoin.
Following Japan’s green light for Bitcoin ETFs, crypto industry participants expect a significant increase in institutional investment in cryptocurrencies. That would automatically boost demand for the digital asset, directly affecting its price trajectory.
What a “Perfect Storm” Would Look Like
Japan’s legislative crypto approval comes when the US is on the verge of passing one of its most significant crypto bills, the CLARITY Act. With the Senate decision fast approaching, crypto community members believe a “YES” vote from the US Senate, coupled with Japan’s latest crypto green light, will form the perfect storm for a Bitcoin bull run. Both decisions would, together, mark a significant milestone for the cryptocurrency industry.
However, it is worth noting that the CLARITY Act decision currently hangs in the balance, with some dissenting voices opposing aspects of the bill. Stalling it may negatively affect Bitcoin’s price and slow its movement. Nonetheless, most BTC enthusiasts believe the crypto’s future can only be delayed, but not indefinitely.
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