Japan Shifts Crypto Regulation into Securities Law

Japan has moved its crypto regulation from payment law to securities law, affecting roughly 105 assets including Bitcoin and Ether.

The change brings mandatory disclosure requirements, insider-trading rules, and market conduct oversight for exchanges handling these assets.

Crypto-asset trading businesses will register under Type I-style registration rules similar to those for securities brokers, with higher penalties for unregistered operators.

The law is expected to take full effect in fiscal year 2027, while a separate tax change lowering the top crypto tax rate from 55% to 20% is set to take effect in January 2028.