Japan has taken one of its most significant steps toward integrating cryptocurrencies into the traditional financial system.

The Japanese parliament has passed an amendment formally designating cryptocurrencies as “financial assets.” Until now, crypto assets in Japan were primarily regulated under the country’s Payment Services Act. The new classification brings them closer to financial products such as stocks, bonds and investment funds.

The decision could eventually lead to lower taxes, stronger investor protections and the introduction of regulated cryptocurrency exchange-traded funds in Japan.

However, the reform does not mean that Japanese Bitcoin ETFs are already trading or that every crypto investor will immediately benefit…