Japan to Allow Crypto ETFs by 2028 as Asia Competition Heats Up

Japan is preparing to permit cryptocurrency exchange-traded funds (ETFs) by 2028, aiming to become a significant player in Asia's crypto market. This move is supported by the Financial Services Agency (FSA) amending the Investment Trust Act to include cryptocurrencies as eligible assets for investment trusts, allowing trading through standard brokerage accounts similar to gold or real estate ETFs. Crucially, the FSA plans legislation in 2026 to reduce the maximum tax rate on crypto gains from 55% to a flat 20%, which is expected to unlock pent-up investor demand. Major asset managers like Nomura and SBI are already preparing products, with estimates suggesting the market could reach \u00a51 trillion ($6.7 billion) in assets under management. The regulatory framework will also mandate strict security protocols for custody to enhance investor protection. This positions Japan against regional competitors like Hong Kong, which already offers spot crypto ETFs, and South Korea, where legislation is also being advanced.

(Source：BeInCrypto)