Japan’s financial regulators are considering classifying cryptocurrency as a financial product, potentially aligning it with stocks and expanding investment opportunities in the digital currency market.

Currently, cryptocurrencies are legally recognized only as a means of payment.

If reclassified as securities, issuers could be required to provide detailed financial disclosures.

The reform could also lift the ban on exchange-traded funds (ETFs) linked to cryptocurrency prices, offering investors new trading options.

The Financial Services Agency is consulting with experts and aims to finalize the reform plans by mid-2025, with further discussions before implementing any changes.