benzinga.com
Japan’s lower house passed a bill on Thursday that puts cryptocurrency in the same legal category as stocks and other financial instruments.
Big Catalyst For Crypto In Japan
The bill advanced after receiving approval from the House of Representatives’ Finance and Financial Affairs Committee, according to Parliament records. If the upper house, i.e., the House of Councillors, approves it, the legislation is expected to take effect next year.
Under the new proposal, cryptocurrency assets would be defined as financial instruments and fall under a regulatory regime akin to that for stocks.
“It is necessary to regulate cryptocurrency trading as a financial instrument transaction rather than as a service related to fund settlement,” the bill read. “Accordingly, it is necessary to improve the disclosure system for information related to cryptocurrencies.”
The tax rate on profits from cryptocurrency transactions could also be affected, being reduced to 20% from the current rate of up to 55%, aligning it with the tax rate for stock trading.
The amendments can also open the door for domestic cryptocurrency exchange-traded funds, like those tied to Bitcoin (CRYPTO: ) and Ethereum (CRYPTO: ).
Japan’s Major Crypto Push
Japan's emerging cryptocurrency regulations appear to be part of a broader wave of changes sweeping the country's digital finance sector.
In October of last year, Japan launched JPYC, the world's first , signaling a broader global move toward regulated digital currencies even in traditionally cash-dominant markets.
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