Japan’s Lower House has reportedly passed legislation that would bring cryptocurrency assets under the country’s financial instruments framework, potentially opening the door to crypto exchange-traded funds and lower tax rates for investors.

The bill would move digital assets closer to the regulatory treatment of stocks and bonds, with capital gains taxes on cryptocurrencies such as Bitcoin and Ether potentially falling from a maximum of 55% to a flat 20% rate from 2028.

The legislation would also place crypto assets under stricter financial market rules, including enhanced disclosure requirements, tighter exchange oversight and insider trading restrictions.

The parliamentary advance follows months of indications that Japan intends to…