Japan May Lift Ban on Spot Crypto ETFs by 2028, SBI and Nomura Advance Product Preparations

Odaily News: Japan's Financial Services Agency (FSA) is reportedly studying the possibility of lifting the ban on spot cryptocurrency ETFs, such as those for Bitcoin, as early as 2028. The related plan includes amending the enforcement order of the Investment Trust Act to include virtual currencies within the scope of "specific assets" that investment trusts are permitted to invest in.

The report states that major financial institutions, including SBI Holdings and Nomura Holdings, have already begun advancing the research and development of related ETF products. Once approved for listing by the Tokyo Stock Exchange, individual investors are expected to be able to participate in cryptocurrency ETF investments through their securities accounts, similar to trading stocks or gold ETFs. A previous survey indicated that at least six asset management firms are already researching related products, targeting both individual and institutional clients.

The report also points out that one of the key prerequisites for lifting the ban is tax system reform. Currently, Japan imposes a comprehensive tax on virtual asset profits that can reach up to 55%. Discussions are underway to potentially adjust this to a separate taxation system with a rate of around 20%. Analysis suggests that if tax and regulatory systems are relaxed simultaneously, it would help expand the asset allocation options for both individual and institutional investors. (Nikkei News)

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