Japan has taken a decisive step toward reshaping its digital asset framework after its cabinet approved a draft amendment that would classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act (FIEA).

The proposal marks a shift from Japan’s current approach, which treats crypto primarily as a payment method under the Payment Services Act. By bringing digital assets under the same legal structure as stocks and other securities, policymakers aim to align the sector with established financial market standards.

If passed during the current parliamentary session, the law could take effect as early as fiscal year 2027.

Under the proposed…

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