Japan Amends Financial Laws: Crypto Reclassified as Financial Instrument

On July 15, 2026, Japan enacted amendments to the Financial Instruments and Exchange Act and the Payment Services Act. Cryptocurrencies are now reclassified from payment methods to financial instruments under the Financial Instruments and Exchange Act. This shift introduces new requirements for information disclosure and market oversight, while discussions regarding a 20% separate taxation and the potential introduction of crypto ETFs continue to gain momentum.