On June 11, as reported by unfolded, Japan plans to redefine cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act, bringing them under the same regulatory framework as stocks and bonds. The House of Representatives of the Japanese Parliament voted today to pass this bill. The legislation will lower the tax rate on cryptocurrency gains from a maximum of 55% (miscellaneous income) to a fixed 20% capital gains tax, while also allowing cryptocurrency ETFs. The new regulations are set to take effect in 2027. The core driving force behind this policy is the significant tax reduction and the enhancement of the industry's compliance status, which is expected to boost local trading volumes and facilitate institutional investment. However, the implementation of stricter regulations (including insider trading controls) will correspondingly increase compliance costs, creating a balance. The long-awaited integration of cryptocurrency markets with traditional financial market rules has taken a significant step forward.