21/07/2026
1. *"JAPAN OFFICIALLY INTRODUCES ITS VERSION OF THE CLARITY ACT"*
2. *"RECOGNIZES CRYPTO AS A FINANCIAL ASSET"*
3. *"ALLOWS BANKS TO HOLD IT"*
4. *"CUT CRYPTO TAXES FROM 55% TO 20%"*
5. *"Japan beats the USA to the punch again!!!"*
Posted: *July 20, 2026 2:29 AM*
The Japanese text in the video: `金融商品取引法および資金決済に関する法律の一部を改正する法律案`
Translation: _"Bill to amend part of the Financial Instruments and Exchange Act and the Payment Services Act"_
*More Insight: What Japan is actually doing*
*1. "Japan's CLARITY Act" = Crypto Tax + Banking Reform Bill*
Japan has been working on this since late 2023. It’s not called "CLARITY Act" but it does the same 3 things:
- *Reclassify crypto*: Move crypto from "miscellaneous income" to *"financial asset"* under FIEA. That’s huge.
- *Let banks hold crypto*: Currently Japanese banks/megabanks like MUFG, SMBC can’t custody crypto directly. This bill would allow it.
- *Tax cut*: Today crypto profits are taxed up to *55%* as "miscellaneous income". The proposal is to cut it to a flat *20% capital gains tax* like stocks.
*2. Why "beats USA to the punch"*
The US CLARITY Act we talked about earlier is still stuck on ethics votes this week.
Japan moving first means: Japanese banks, brokers, and ETFs can legally get into crypto before US firms get full clarity. That puts pressure on US lawmakers.
*3. What this unlocks for Japan*
If this passes:
- *Bank crypto custody*: MUFG, SBI, Nomura can hold BTC/ETH for clients
- *Crypto ETFs*: Spot BTC/ETH ETFs likely approved fast after this
- *Corporate adoption*: Japanese companies can hold BTC on balance sheets with clear tax rules
- *Retail boom*: 20% tax vs 55% means way more Japanese retail will trade
*4. Reality check*
This bill has been in the Diet for months. The video shows a committee vote.
It still needs full Diet approval + cabinet signoff. But Japan’s FSA has been pushing hard for this to make Tokyo a crypto hub vs Singapore/HK.
*Big Picture: US vs Japan vs Russia this week*
Country Move Date
**Japan** Reclassify crypto, cut tax to 20%, let banks hold Bill introduced July 20
**USA** CLARITY Act vote Targeting July 21-27
**Russia** Legalize BTC for foreign trade Effective target July 1
All 3 G7/G20 countries are rewriting crypto law in the same week.
*Bottom line*
If Japan passes this, it’s the most pro-crypto move from a G7 country yet.
20% tax + banks holding crypto = Japan becomes the safest place in Asia to build crypto companies.
It also puts huge pressure on the US to pass CLARITY this week or risk capital/business moving to Tokyo.
