Japan has advanced legislation that would cut crypto taxes to 20%, introduce ETF pathways, and place digital assets under the same regulatory framework as stocks.

According to Bloomberg, Japan’s lower house approved a bill on Thursday that would classify cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act, bringing the sector closer to traditional securities markets. The proposal is expected to move through the upper house before taking effect next year.

Once implemented, the legislation would reduce the tax treatment of crypto gains from the current maximum rate of 55% to a flat 20%, matching stocks and bonds. The tax changes are expected to take effect in 2028.

Officials have framed the…