Key Insights:

• Japan has redefined crypto as a financial instrument. It added insider trading prohibitions and applied traditional financial market regulations.
• New legislation mandates crypto issuers to make annual disclosures. It also raises fines for unregistered exchanges and market misconduct.
• Japan’s policy shift signals stronger institutional adoption of crypto. The country plans to roll out crypto ETFs by 2028 and cut the tax rate on crypto gains to 20%.

Japan has approved a bill that classifies crypto assets as financial instruments. The Cabinet cleared the amendment on Friday under the Financial Instruments and Exchange Act. The new framework adds insider trading restrictions to crypto transactions.

It also requires…