Woofun AI reports that the Japanese House of Councillors passed amendments to the Financial Instruments and Exchange Act and Payment Services Act on July 15, reclassifying cryptocurrency from a payment method to a financial asset. The legislation increases maximum penalties for unregistered activities to 10 years imprisonment and fines up to 10 million yen, while introducing insider trading regulations and annual disclosure requirements for specific issuers.

Taxation reforms shift the rate from a maximum 55% comprehensive levy to a separate filing rate of approximately 20%, permitting three-year loss carryforwards. These changes, scheduled for implementation on January 1, 2028, also establish a regulatory framework to support the creation of cryptocurrency ETFs.