Japan Advances Crypto Bill with 20% Tax Rate and Stronger Trading Rules

Highlights:

• Japan plans to cut crypto taxes from as much as 55% to a flat 20%, matching stocks and bonds.
• The Japan crypto bill would introduce tougher insider trading rules and increase penalties for unregistered crypto sellers.
• The bill could open the door for Bitcoin and crypto ETFs in Japan as early as next year.

Japan has advanced a crypto bill that would cut taxes on cryptocurrency gains to 20%, according to Bloomberg. The measure would also create a pathway for crypto exchange-traded funds and place digital assets under the same regulatory framework as stocks.

Japan Advances Crypto Tax Cut, Opens Path For ETFs

Japan's Lower House has passed a bill that would reclassify cryptocurrencies as financial products and reduce taxes from as high as 55% to 20%, per The Japan Times.

The lawmakers have also advanced legislation that could pave… pic.twitter.com/XgiKoIOMqN

— BSCN (@BSCNews) June 11, 2026

Japan’s House of Representatives approved the bill today and sent it to the House of Councillors for review. The broader regulatory framework could take effect next year, while the tax changes would follow in 2028.

The bill would reduce taxes on profits from Bitcoin, Ethereum, and other cryptocurrencies from the current maximum of 55% to a flat 20%. The new rate would match the tax treatment currently applied to stocks and bonds. Japan currently treats crypto profits as miscellaneous income. The system can push tax obligations as high as 55% depending on an investor’s earnings.

The proposed rate would replace the current progressive tax structure with a single flat rate. Investors who generate large crypto gains currently face higher tax bills than investors who trade stocks. The change would remove one of the largest tax differences between digital assets and traditional investment products.

Japan Crypto Bill Sets New Standards for the Industry

The crypto bill would classify cryptocurrencies such as Bitcoin and Ether as financial instruments under the Financial Instruments and Exchange Act of Japan. The change would place digital assets under the same legal framework that governs traditional securities markets.

The bill expands reforms that Japan approved in April. The amendments formally reclassified crypto assets and introduced restrictions on insider trading activity. Under the latest proposal, authorities would align insider trading penalties for crypto assets with those applied to listed securities. The move would place crypto trading under rules that already apply to stock market participants.

Crypto officially became financial assets in Japan. Big day! https://t.co/1t5gOiMhmP

— Sota Watanabe (@WatanabeSota) April 10, 2026

Authorities also plan to increase the maximum prison sentence for unregistered crypto sellers from three years to ten years. The tougher penalty would apply to individuals and entities that offer crypto-related services without proper authorization.

The bill introduces additional disclosure obligations for crypto issuers. Companies involved in digital asset issuance would need to provide more information to regulators and market participants. Authorities previously introduced annual reporting requirements and increased penalties for exchanges operating without licenses. The latest reforms build on those measures through stricter compliance standards and stronger enforcement tools.

ETF Access Expands While Stablecoin Projects Move Forward

The crypto bill would create a pathway for crypto exchange-traded funds in Japan. Japan Exchange Group expects crypto-linked ETFs could begin listing as early as next year if lawmakers complete the approval process. The products would give Japanese investors access to crypto ETFs through domestic financial markets for the first time. Bitcoin and Ether stand among the assets that could benefit most from the change.

Japanese investors currently rely largely on publicly listed companies with major crypto holdings to gain exposure to digital assets. One example is Metaplanet, which holds more than 40,000 Bitcoin on its balance sheet.

The proposed securities framework would not apply to stablecoins. Authorities will continue to regulate stablecoins under Japan’s payment services laws rather than securities regulations. Meanwhile, MUFG Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank plan to begin live transactions using a jointly issued stablecoin. The initiative follows an FSA-backed pilot that tested stablecoin issuance and cross-border payments late last year.

$7T Japanese Banking Giants Unite For Stablecoin Push

Japan's three largest banks are planning a joint stablecoin launch by 2027, per Nikkei.

Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho manage more than $7 trillion in combined assets.

The initiative follows a pilot conducted… pic.twitter.com/1y04a7pF7p

— BSCN (@BSCNews) June 10, 2026

The stablecoin project and ETF framework represent separate parts of Japan’s digital asset strategy. While the crypto bill focuses on investment products and market oversight, stablecoin projects continue to develop under the existing payment regulations.