Market News

Japan's Crypto Revolution: Spot ETFs on the Horizon by 2028

Japan is gearing up to officially approve spot cryptocurrency exchange-traded funds (ETFs) by the year 2028.

This significant regulatory shift would allow investors to gain easier access to Bitcoin and other cryptocurrencies through the stock market.

The Financial Services Agency (FSA) is expected to lift its longstanding ban on crypto ETFs, enhancing investor protection and market accessibility.

Prominent financial institutions such as Nomura Holdings and SBI Holdings are already working on launching these ETFs on the Tokyo Stock Exchange.

In addition, SBI Group is reportedly pursuing a dual-asset crypto ETF that would include both Bitcoin and XRP, tapping into a broader segment of the investor market.

Japan’s move aligns with the global trend of increasing ETF popularity, as seen in the success of spot Bitcoin ETFs in the United States and other Asian markets.

Amid this evolving landscape, the FSA plans to introduce new legislation in 2026 that includes a significant reduction in the crypto tax rate from 55% to 20%.

This tax reform could serve as a catalyst for greater investor participation and solidify Japan's role in the competitive Asian crypto market.

While some critics like SBI's CEO Yoshitaka Kitao express concern that Japan is lagging behind, the impending regulatory changes signal a new chapter for cryptocurrency in the country.

Ultimately, the approval of spot crypto ETFs is poised to transform Japan's financial ecosystem, attracting both retail and institutional investors eager to engage with digital assets.