Japanese Companies Unite to Support Crypto ETFs in Japan

Japanese Companies Urge Regulators to Prioritize Crypto ETFs

Japanese financial regulators are currently examining the possibility of approving cryptocurrency exchange-traded funds (ETFs) following recent approvals from U.S. regulators for spot Bitcoin and Ethereum ETFs. This comes as a significant step for Japan, as a group of major companies has expressed strong support for these digital assets.

The coalition includes influential names like Mitsubishi UFJ Trust and Banking Corp. and Sumitomo Mitsui Trust Bank, alongside crypto exchanges such as bitFlyer Inc. and brokerage firms like Nomura Securities Co. and SBI Securities Co. In a statement released on Friday, the group emphasized that both Bitcoin and Ethereum have proven to be stable and valuable over time, making them suitable for medium and long-term investments.

Call for Tax Revisions and ETF Priority

The Japanese group also urged regulators to review existing tax systems, particularly concerning how taxes are applied to income generated from cryptocurrencies. Currently, Japan taxes crypto gains as miscellaneous income, imposing a hefty tax rate of 55%. The coalition believes that updating the tax structure could encourage greater institutional investment in the crypto market.

A Financial Services Agency (FSA) official indicated in September that the agency is open to reassessing its regulatory stance to better accommodate the growing crypto industry. However, the official cautioned that this review process will take time and may not yield immediate results. FSA chief Hideki Ito has previously expressed skepticism regarding crypto ETFs, indicating that there are no guarantees for swift regulatory changes.

While Japan is contemplating these developments, other regions like Hong Kong and China have already taken significant steps, approving crypto-linked ETFs. The U.S. has also recently greenlighted Bitcoin and Ethereum ETFs, highlighting a global trend towards integrating digital assets into traditional finance. As Japan evaluates its approach, the growing momentum in other markets may push the country to accelerate its regulatory processes.