The Japanese government has amended the Financial Instruments and Exchange Act to classify crypto assets as financial instruments. The amendment also bans insider trading and requires cryptocurrency "issuers" to be more transparent and disclose information once a year. This move is a significant step towards mainstream adoption of the digital currency. The Financial Services Agency had previously regulated crypto assets under the Payment and Settlement Act, but updated regulations to reflect increased institutional investment. The government also plans to reduce the maximum tax rate on crypto profits to 20% and legalize crypto exchange-traded funds by 2028.