Japan Financial Services Agency targets 2028 for spot crypto ETF approval with tax rate cut to 20 percent

Japan sets 2028 crypto etf goal

Japan plans to approve spot cryptocurrency exchange-traded funds (ETFs) by 2028, according to a timetable reported by Nikkei Asia and other financial outlets. The Financial Services Agency (FSA), Japan's financial regulator, prepares changes to the Investment Trust Act so crypto assets become recognised as eligible assets for ETF products. This timetable places the first listings on the Tokyo Stock Exchange after the new rules and supervisory guidance reach final form. The plan builds on several years of regulation of crypto exchanges, custody services, and licensed trust banks in Japan.

Tax reform reshapes local crypto returns

Japan taxes individual crypto gains under a progressive income schedule that reaches about 55 percent at the highest bracket as of 2025. Planned reform linked to the ETF framework reduces this burden to a flat 20 percent rate for specified crypto investments treated as financial assets. Lawmakers and the FSA connect the tax change to reclassification under financial instruments rules so listed products receive treatment similar to stocks and investment trusts. A lower rate aims to move investors from offshore platforms into domestic brokerage accounts where Japanese law applies.

Nomura and sbi prepare etf products

Domestic securities groups Nomura Holdings and SBI Holdings prepare spot crypto ETF products for listing once the new rules take effect, according to reports from January 2026. Their asset management subsidiaries study index construction, custody arrangements, and market making for Bitcoin and other large-cap cryptocurrencies. Industry reports describe at least six Japanese managers that design similar vehicles in parallel during this preparation phase. Estimates from these firms place potential ETF assets at around one trillion yen, or roughly 6 to 7 billion US dollars, after launch.

"over 60% of investors [in Japan] had expressed interest in crypto investments in some form or other", August 2025. — Hajime Ikeda, Executive Officer, Nomura Holdings

Security events drive custody standards

The 2024 hack of Japanese exchange DMM Bitcoin removed 4,502.9 bitcoin worth about 48.2 billion yen from company wallets on 31 May 2024. The incident ranked as the eighth largest crypto theft and the largest since FTX collapsed in November 2022. After that loss, Japanese regulators tightened expectations for custody, including for licensed trust banks that store assets for institutional clients. These standards form the baseline for ETF custody arrangements where regulated banks store underlying coins instead of exchanges.

Japan tracks us etf asset growth

Spot Bitcoin ETFs in the United States held more than 120 billion US dollars in net assets by mid-January 2026. The ¥1 trillion estimate for Japan represents roughly 5 to 6 percent of that scale, suggesting measured initial adoption compared to the larger US market. Speculation: A successful Japanese launch with a 20 percent tax rate and products from Nomura and SBI may shift domestic investors from direct exchange trading into ETF structures.