The Japanese Senate passed the Act on Encrypted Monetary and Financial Products

According to Coinpost, for the first time at the legal level, the Conference of the Senate of Japan adopted the Financial Merchandise Transactions Act and the Financial Settlement Act Amendment Act, which formally defines encrypted currency as a “financial product”. In order to strengthen investor protection, Japan has introduced the regulation of insider trading in the area of encrypted currency, prohibited the use of undisclosed vital information for trading purposes and granted investigative powers to surveillance committees such as securities trading, while raising the maximum penalty for unlicensed business to 10 years' imprisonment or a fine of 10 million yen to introduce mandatory annual information disclosure requirements for issuers of “specified encrypted assets”. The bill also promotes a shift from a combined tax (up to 55 per cent) to a declared separative tax (about 20 per cent) and supports a three-year loss credit, which is expected to take effect on 1 January 2028. In addition, the proposed amendment would establish an institutional framework to support the encryption-related ETF。