Japan's Lower House Passes Bill to Reclassify Crypto as Financial Instruments, Cutting Tax Rate from 55% to 20%

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According to market analyst Xaif Crypto, Japan's Lower House has passed a bill reclassifying cryptocurrencies including Bitcoin, Ethereum, and XRP as financial instruments under the Financial Instruments and Exchange Act. If approved by the Upper House, digital assets would face the same regulatory framework as stocks and bonds, including strict insider trading laws and enhanced transparency requirements from exchanges and issuers. The proposal also replaces the current miscellaneous income tax treatment—which reaches up to 55%—with a flat 20% capital gains tax, aligning crypto with traditional investments and potentially attracting institutional participation.
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