Japan and its 2028 cryptocurrency ETF roadmap: A strategic entry point for institutional Capital .
Japan is gradually preparing for a major shift in its cryptocurrency policy , aiming to allow the launch of crypto ETFs by 2028. This is coupled with extensive tax reforms , which could be a turning point in attracting institutional Capital and long-term investors. While progress is slower than in the US or Hong Kong, Japan's strategy focuses on stability, transparency, and sustainability.
New legal framework for cryptocurrency ETFs
The core of the plan lies in reclassifying cryptocurrencies as “financial assets” under the Investment Fund Act. Once this is passed, Bitcoin, Ethereum, and other digital assets will be eligible for inclusion in ETFs listed on Japanese stock exchanges.
Japan's approach is cautious, prioritizing the establishment of a solid legal framework before full opening. Requirements for custody, risk control, and information transparency will be designed similarly to traditional financial products, aiming to minimize risks for individual and institutional investors.
Tax reform: A game-changer
One of the biggest obstacles to the crypto market in Japan over the years has been the very high tax rate , which can reach up to 55% on profits from cryptocurrency trading. This makes long-term investment less attractive and limits the participation of large Capital flows.
According to the reform plan:
Taxes on profits from crypto, ETFs, and Derivative are expected to be reduced to a fixed rate of around 20% , similar to that on stocks.
Allowing for losses to be offset over several years helps investors better manage risk in a highly volatile market.
If implemented as planned, tax reform will be a key factor in making the Japanese crypto ETF market more competitive compared to other regions.
Opportunities for institutional Capital
Major financial institutions in Japan, such as banks, asset management companies, and securities firms, are closely monitoring this process. Given the enormous scale of assets under management, even a small fraction of Capital flowing into crypto ETFs could have a significant impact on the market.
Forecasts suggest that once crypto ETFs are legalized, the Japanese market is likely to attract billions of dollars in new Capital , particularly from pension funds, long-term investment funds, and institutional investors who require a clear legal Capital .
Comparison with global markets
Compared to the US – where a Bitcoin spot ETF has been approved – Japan is clearly moving at a slower pace. However, the difference lies in its development philosophy. Instead of prioritizing speed, Japan opts for stability and risk management .
This strategy could help Japan become a safe haven for crypto ETFs, suitable for traditional financial institutions that are cautious about high-risk assets.
The 2028 cryptocurrency ETF roadmap, along with tax reforms, is opening up a strategic entry point for institutional Capital inflows in Japan . While more time is needed to finalize the legal framework, the current direction shows that Japan is not staying out of the global crypto game, but is preparing for a slow but steady move.
If the plan is implemented as expected, Japan could become one of the most stable and attractive crypto ETF markets in Asia in the next phase.
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The article "Japan Plans 2028 Crypto ETF and Tax Reforms" first appeared on CoinMoi .
