Japan just took its biggest step toward becoming a serious crypto-friendly economy. On June 11, the country’s Lower House passed a bill that reclassifies digital assets as financial instruments, a move that would cut capital gains taxes on crypto from a punishing 55% to a flat 20%.

The bill now heads to the Upper House, where approval is widely expected. If enacted, the new tax rate would take effect in 2028, giving Japan one of the more competitive crypto tax regimes among major economies.

From payments to financial instruments

Japan’s current crypto framework regulates digital assets under the Payment Services Act. The new legislation moves oversight to the Financial Instruments and Exchange Act, known as…