Japan may lift the ban on spot cryptocurrency ETFs in 2028; SBI and Nomura have already begun product preparation.

Japan's Financial Services Agency (FSA) is studying the possibility of lifting the ban on cryptocurrency ETFs, including Bitcoin, as early as 2028. The plan includes amending the Enforcement Ordinance of the Investment Trust Law to include virtual currencies within the scope of "specific assets" that investment trusts can invest in. Reports indicate that large financial institutions such as SBI Holdings and Nomura Holdings have already begun developing related ETF products. Once approved for listing on the Tokyo Stock Exchange, individual investors could potentially participate in cryptocurrency ETF investments through their securities accounts, similar to trading stocks or gold ETFs. Previous surveys showed that at least six asset management institutions are researching related products, covering both individual and institutional clients. The report also points out that a key prerequisite for lifting the ban is tax reform. Currently, Japan imposes a comprehensive tax of up to 55% on virtual asset gains, and discussions are considering adjusting this to a separate tax system of approximately 20%. Analysts believe that if the tax system and regulations are relaxed simultaneously, it will help expand the asset allocation options for individual and institutional investors. (Nikkei)