Japan may lift the ban on cryptocurrency ETFs in 2028, with SBI and Nomura actively developing related products

According to a report by Nikkei, the Financial Services Agency of Japan is expected to lift the ban on spot cryptocurrency ETFs, such as Bitcoin, by 2028.

To achieve this goal, authorities plan to amend the enforcement order of the Investment Trust Act to classify virtual currencies as "specific assets" eligible for investment trusts. Reportedly, major financial institutions like SBI Holdings and Nomura Holdings are advancing the development of related products. If approved for listing by the Tokyo Stock Exchange, individual investors will be able to trade cryptocurrency ETFs through their brokerage accounts, just like buying and selling stock 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 lifting of the ban is contingent upon tax reform. Currently, Japan applies comprehensive taxation to virtual assets, with a maximum tax rate of 55%. Discussions are underway to adjust this to a separate taxation system with a unified tax rate of 20%. Reports analyze that this move will expand asset allocation options for both individual and institutional investors.