Japan Approves Bill to Classify Crypto as Financial Instruments

The Japanese government has approved changes to its financial laws and has classified crypto assets as financial instruments. This decision marks a major shift in the country’s approach to digital assets and brings the sector closer to traditional finance regulations. The amendments to the Financial Instruments and Exchange Act were approved today (Friday, 10^th April) and introduced stricter oversight of crypto markets, including a ban on insider trading involving undisclosed information. 

The revised law also requires cryptocurrency “issuers” to provide annual disclosures, increasing transparency for investors. 

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

— Sota Watanabe (@WatanabeSota) April 10, 2026

New Changes

Until now, Japan’s Financial Services Agency has regulated crypto mainly under the Payment and Settlement Act, treating digital assets as a means of payment. The new classification reflects the rapid growth of institutional investment in crypto and places digital assets in a framework similar to stocks and other conventional financial products. 

Japan’s Finance Minister Satsuki Katayama said at a press conference after the Cabinet meeting, “We will expand the supply of growth capital in response to changes in financial and capital markets, and ensure market fairness, transparency, and investor protection.” The penalties for operating unregistered crypto exchanges have also been increased under the amendment. 

In December 2025, the government supported plans to lower the tax burden on cryptoprofits to a flat 20% rate. Japan is also expected to legalize crypto exchange-traded funds by 2028, with major firms such as Nomura Holdings and SBI Holdings likely to launch crypto-linked exchange-traded products.