Japan has reclassified Bitcoin as a financial asset, removing a key barrier to spot ETF approval. The change moves crypto from the Payment Services Act to the Financial Instruments and Exchange Act, aligning it with stocks and bonds.
This isn’t symbolic. The shift ends structural roadblocks for Japanese asset managers and cuts the top tax rate on crypto gains from 55% to 20% by 2028. South Korea is following the same playbook, updating 1950s-era property laws to include digital assets.
"The influx of institutional investors is peeing in the pool."
- David Bennett, Bitcoin And | Bitcoin & Economic News
Japan and South Korea are absorbing Bitcoin into legacy finance to enable institutional access. But in Europe, the opposite is happening. MiCA’s strict KYC and travel rules triggered an exodus: when Binance pulled out, 70% of users moved to self-custody, not regulated exchanges.
The regulatory design backfired. Instead of channeling users into compliant platforms, it pushed capital beyond oversight entirely. New Hampshire is now codifying self-custody into law, creating a legal firewall against federal overreach.
"Every compliance layer acts as a control point. By choosing self-custody, users are removing assets from regulatory reach."
- Frederico Rivi, Bitcoin And | Bitcoin & Economic News
The split is deepening: East Asia institutionalizes, Europe decentralizes, and U.S. states push back. The battle isn’t just over regulation - it’s over who controls the asset.
