Japan plans crypto ETFs by 2028 as Asia rivalry builds

Japan’s Financial Services Agency plans to permit cryptocurrency exchange-traded funds by 2028 as part of a broader regulatory overhaul, according to a Nikkei report.

The regulator intends to amend the Investment Trust Act to classify cryptocurrencies as eligible assets, enabling crypto ETFs to trade on the Tokyo Stock Exchange via standard brokerage accounts.

Nomura Asset Management and SBI Global Asset Management are preparing products ahead of the rule change, with industry estimates projecting up to ¥1 trillion in assets under management.

Japan also plans to cut the maximum tax on crypto gains from 55% to a flat 20% by reclassifying digital assets under the Financial Instruments and Exchange Act.

The proposed tax reform is expected to unlock pent-up investor demand that has been constrained by Japan’s historically high crypto tax burden.

The FSA will impose strict custody and disclosure standards on ETF providers, reflecting lessons from past exchange hacks and market volatility.

Hong Kong remains Asia’s only market with retail spot crypto ETFs, though total assets trail far behind those of the United States.

South Korea’s ruling party is advancing a Digital Asset Basic Act, but the timing remains uncertain ahead of upcoming elections.

Taiwan and Singapore continue to take divergent approaches, highlighting Asia’s fragmented regulatory landscape for crypto investment products.