Japan · Bitcoin · Bitcoin Magazine
Japan's parliament approved legislation reclassifying bitcoin and other cryptocurrencies as financial assets
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Japan’s parliament passed an amendment on Wednesday that reclassifies cryptocurrency as a “financial asset,” a shift that pulls bitcoin and other digital assets out of the country’s payments regime and into the framework that governs stocks, bonds, and investment trusts, according to a report from public broadcaster…
Key facts
- The maximum prison term for unregistered crypto operators rises from three years to 10, while the top fine increases from 3 million yen to 10 million yen, near $62,000
- The reduction, tied to the 2026 Tax Reform Outline, activates in 2028
- The change strips crypto of its prior status under the Payment Services Act, where regulators treated it as a means of settlement, and folds it into the Financial Instruments and Exchange Act (FIEA)
- Japan’s cabinet first approved this measure as a draft amendment in April 2026, but that step only sent the bill toward the Diet for debate
Summary
Japan's parliament approved legislation reclassifying bitcoin and other cryptocurrencies as financial assets, marking a major regulatory shift that aligns digital assets more closely with traditional financial markets. The change strips crypto of its prior status under the Payment Services Act, where regulators treated it as a means of settlement, and folds it into the Financial Instruments and Exchange Act (FIEA), the same statute that oversees traditional securities. The amendment moves bitcoin and other crypto under a single investor-protection standard. Japan’s cabinet first approved this measure as a draft amendment in April 2026, but that step only sent the bill toward the Diet for debate.