Japan is set to approve its first cryptocurrency exchange-traded funds by 2028, opening the door for retail investors to easily access digital assets like Bitcoin and XRP through traditional brokerage accounts.
Key Takeaways
- Japan plans to lift its ban on spot crypto ETFs by 2028, with proposed regulatory changes underway.
- Nomura and SBI are preparing crypto ETF products, aiming for listings on the Tokyo Stock Exchange.
- The FSA also aims to reduce crypto tax from 55 percent to 20 percent, encouraging more local investment.
- Security protocols and investor protections will be strengthened following recent crypto hacks in Japan.
What Happened?
Japan’s Financial Services Agency (FSA) is planning to amend key legislation by 2028, allowing the country’s first spot crypto ETFs. This marks a major regulatory shift and signals Japan’s growing openness to mainstream crypto adoption. Institutions like Nomura Holdings and SBI Holdings are already developing ETF products in anticipation of the change.
JAPAN EYES CRYPTO ETF APPROVAL BY 2028 WITH NOMURA & SBI AT THE FOREFRONT
— Crypto Town Hall (@Crypto_TownHall) January 26, 2026
Japan may green-light crypto ETFs as early as 2028, with Nomura and SBI Holdings positioned to lead the initial listings.
This signals Japan’s growing embrace of regulated crypto investment products… pic.twitter.com/em1pihLQuE
Japan’s Crypto ETF Era is on the Horizon
The move to introduce crypto ETFs in Japan comes after years of regulatory caution. The FSA plans to amend the enforcement order of the Investment Trust Act, officially allowing cryptocurrencies to be classified as “specified assets.” This amendment would enable these digital assets to be included in publicly traded ETFs, similar to gold or real estate funds.
Investors will then be able to trade crypto ETFs through regular brokerage accounts, offering a familiar and regulated path to crypto exposure. The Tokyo Stock Exchange will need to approve each ETF listing, and several financial giants are already preparing submissions.
Key players and developments include:
- Nomura Asset Management and SBI Global Asset Management are actively building ETF products, awaiting regulatory clearance.
- SBI previously announced its intention to launch two crypto ETFs: one with 49 percent in Bitcoin, and another combining Bitcoin and XRP.
- If approved, these will become the first spot crypto ETFs listed in Japan.
Tax Reform Could Fuel Investor Interest
Perhaps even more impactful than the ETF listings is the FSA’s plan to change how crypto profits are taxed. A bill set for submission in 2026 proposes classifying crypto gains under the Financial Instruments and Exchange Act. If passed, the maximum tax rate on crypto earnings would drop from 55 percent to a flat 20 percent.
This tax reform would align crypto with stocks and investment trusts, and it could unlock a flood of retail investor demand. Currently, Japan’s high tax rates discourage individuals from realizing profits on digital assets.
Learning from the Past: Risk Management a Priority
Japan’s regulators are also prioritizing investor safety. In response to the 2024 DMM Bitcoin hack that led to nearly ¥50 billion in losses, the FSA will require trust banks handling ETF custody to follow strict security protocols. Asset managers and securities firms must also enhance their disclosures and operational safeguards to protect investors.
Finance Minister Satsuki Katayama has publicly backed the initiative, declaring 2026 as Japan’s “digital year.” She noted how ETFs in the U.S. have become a hedge against inflation and sees a similar role for them in Japan’s economy.
Regional Competition Heats Up
While Japan is just entering the crypto ETF market, neighboring countries have already taken the leap:
- Hong Kong launched six Bitcoin and Ether ETFs in April 2024 and added Solana ETFs in late 2025. Total assets are around $500 million.
- South Korea is still drafting its regulatory framework for spot crypto ETFs, with political debates potentially delaying rollout.
Despite arriving later, Japan’s large asset base and trusted financial institutions give it the potential to emerge as a serious player in the global crypto ETF space. Industry experts estimate the market could reach ¥1 trillion ($6.7 billion) in assets under management, based on comparisons with the U.S., where spot Bitcoin ETFs now hold over $120 billion.
CoinLaw’s Takeaway
In my experience watching how crypto markets evolve around regulation, this move by Japan is a big deal. For years, Japan has played it safe when it comes to digital assets. But this pivot shows the country is ready to open up its markets in a serious and secure way. With major institutions like Nomura and SBI already prepping products, and tax reform likely on the way, Japan could become one of the most attractive crypto investment destinations in Asia. I found the combination of smart policy, investor demand, and strong institutional backing to be a promising sign for the country’s digital asset future.
