PANews reported on January 26th that, according to Nikkei, Japan's Financial Services Agency (FSA) is expected to lift the ban on spot cryptocurrency ETFs, including Bitcoin, by 2028. To achieve this goal, the authorities plan to amend the Enforcement Ordinance of the Investment Trust Law to classify virtual currencies as "specific assets" that investment trusts can invest in. Reportedly, large financial institutions such as SBI Holdings and Nomura Holdings are already developing related products. If approved for listing on the Tokyo Stock Exchange, individual investors will be able to trade virtual currency ETFs through their securities accounts, just like they would trade stocks or gold ETFs. Previous surveys have shown that at least six asset management companies are researching and developing related products, targeting both individual and institutional investors.
The prerequisite for lifting the ban is tax reform. Currently, Japan uses a comprehensive taxation system for virtual assets, with a maximum tax rate of 55%. Discussions are underway to adjust this to a separate taxation system, with a uniform tax rate of 20%. The report analyzes that this move will expand asset allocation options for individual and institutional investors.
