BlockBeats News, July 15th: During the plenary session of the Japanese House of Councillors on July 15th, the House passed the Financial Instruments and Exchange Act and the Payment Services Act, redefining cryptocurrency from a means of payment to a financial asset.

The key amendments include: raising the maximum penalty for unregistered financial activities from less than 3 years to less than 10 years, and increasing the fine from less than 3 million yen to less than 10 million yen; introducing regulations on cryptocurrency insider trading for the first time, prohibiting trading based on undisclosed material information; requiring specific cryptocurrency issuers to disclose information regularly every year.

Regarding taxation, the system will shift from a maximum 55% comprehensive tax rate to a separate filing tax rate (approximately 20%), allowing losses to be carried forward for 3 years, expected to be implemented starting January 1, 2028. Additionally, the proposed amendments will also establish a framework to support the creation of cryptocurrency ETFs.