Something interesting is happening in the Japanese financial system. The Japanese government has just implemented significant regulatory changes, integrating cryptocurrencies into a single regulatory framework with traditional securities. This is not just a technical detail — it signals how the third-largest economy in the world perceives digital assets.

Until now, crypto in Japan was mainly considered as a payment instrument under the Payment Services Act. Now, they are classified as financial instruments, expanding regulatory oversight and introducing mandatory annual disclosures for issuers. Simultaneously, internal trading and manipulation based on non-public information are prohibited — the same as for regular securities.

Japan is clearly preparing for widespread adoption of crypto in the financial sector. By 2028, cryptocurrency exchange funds are planned to be legalized, and it’s already evident that major players like Nomura Holdings and SBI Holdings are preparing to develop relevant products. This means a shift from speculative trading to serious investment tools for ordinary people.

By the way, the tax system is also changing. Profits from crypto will be taxed at a flat rate of 20%, simplifying calculations and making crypto investments more transparent for individuals and legal entities. Finance Minister Satsuki Katayama has repeatedly emphasized that a reliable market infrastructure and transparency of operations are key to ensuring citizens benefit from digital assets.

For issuers and exchanges, this means increased compliance requirements, but in the long run, it will improve market quality. For investors, annual disclosures will enhance visibility into projects, management, and risks — making it easier to compare crypto offerings with traditional securities.

I am monitoring these changes because they show how Japan’s crypto regulation is evolving from experimental to institutionalized. When an economy of this scale integrates crypto into its core financial system, it impacts the entire global market. We await details on which assets will fall under the new framework, but the overall trend is clear — Tokyo is seriously preparing for a crypto future.