On July 15, the Japanese Senate passed the Financial Instruments and Exchange Act and the Payment Services Act, redefining crypto assets from a means of payment to financial products. Key revisions include: increasing the maximum prison term for unregistered financial activities from under 3 years to under 10 years, and raising fines from under 3 million yen to under 10 million yen; the introduction of regulations against insider trading in crypto assets, prohibiting trading based on undisclosed significant information; and requiring specific crypto asset issuers to disclose information regularly on an annual basis. In terms of taxation, the system will shift from a maximum comprehensive tax rate of 55% to a separate declaration tax system (approximately 20% rate), allowing losses to be carried forward for 3 years, with implementation expected from January 1, 2028. Additionally, the proposed amendments will establish a framework to support the creation of crypto asset ETFs.