Japan’s government has officially classified cryptocurrencies as financial products, marking a shift in how the country plans to regulate digital assets.

The new classification places cryptocurrencies such as Bitcoin (CRYPTO: $BTC) under the Financial Instruments and Exchange Act, a framework used for stocks and other securities.

If passed during the current parliamentary session, the new crypto classification could take effect as early as 2027.

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Until now, Japan has treated cryptocurrencies that also include Ethereum (CRYPTO: $ETH) as a payment tool under the Payment Services Act. 

The previous approach focused on custody,…