Japan advances bill to legalize Bitcoin ETFs, cut crypto taxes

Japan’s Upper House committee approved a bill that would legalize Bitcoin ETFs and reduce crypto taxes to a flat 20%, marking a major shift in the country’s treatment of digital assets. The proposal reclassifies cryptocurrencies as financial instruments under Japan’s Financial Instruments and Exchange Act, paving the way for regulated ETF listings on the Tokyo Stock Exchange, potentially by late 2027 or 2028. While the article notes prediction markets still assign only a low probability to Bitcoin reaching $200,000 by end-2026, the legislative progress is broadly supportive for Bitcoin by improving its legitimacy, accessibility, and institutional appeal. The near-term market impact is likely sentiment-driven rather than immediate price action, but the move could attract longer-term capital inflows if final approval and implementation proceed as expected.