According to Odaily, Japan’s House of Representatives has passed a bill that would regulate cryptocurrencies under the Financial Instruments and Exchange Act. The measure would move crypto assets closer to the regulatory framework used for stocks and other investment products, placing them within a more traditional financial-market structure.
Crypto Assets to Be Classified as Financial Instruments
Under the proposed rules, crypto assets would be classified as financial instruments, with the new framework expected to take effect next year. The bill includes changes related to lower tax burdens, stricter trading rules, and a framework that would provide room for the launch of crypto asset ETFs.
The legislation also introduces a ban on insider trading similar to rules in the stock market, along with tougher disclosure requirements. It sets investment caps for unaudited token issuances and significantly raises penalties for unregistered crypto business operators. The report was cited from CoinDesk.