Japan Finance Minister Says Government Will Pursue Approval of Crypto ETFs

Japan is moving to introduce cryptocurrency exchange-traded funds, Nikkei reported on July 10.

Satsuki Katayama, Japan’s finance minister, said in a keynote speech at the Open QUICK 2026 seminar hosted by financial information provider QUICK that the government will pursue a review aimed at allowing crypto ETFs in Japan. She added that the country needs to improve its regulatory framework and trading environment so investors can trade with confidence.

The government plans to amend the Financial Instruments and Exchange Act to classify crypto assets, which are now regulated under the Payment Services Act, as financial products. Once the revision is completed, SBI Securities Co. and Rakuten Securities Inc. plan to begin selling crypto ETFs, while major brokerages are also preparing related products for the new regime, Nikkei said.

Japan is also pursuing tax changes. Income from crypto trading is currently taxed at rates of up to 55%, but the revised framework would apply a separate 20% tax, similar to the treatment of stocks and investment trusts.

The amendment to the Financial Instruments and Exchange Act passed the House of Representatives in June and is now being deliberated in the House of Councillors. If the bill passes in the current Diet session, it would take effect in 2027, with the tax cut applying from Jan. 1, 2028.

Japan is also stepping up investor protection. The Financial Services Agency plans to set up a dedicated division for crypto assets and stablecoins as early as July. Katayama said it is important to ensure both regulatory flexibility and investor protection in a field where technology is advancing rapidly. The government will support the development of the digital finance industry while reflecting global trends, she said.