Japan Finance Minister Backs Move to Permit Crypto ETFs

Japan is moving to allow exchange-traded funds tied to crypto assets, the Nikkei reported.

Japanese Finance Minister Satsuki Katayama said at the Open Quick 2026 seminar on July 10 that the government will study permitting crypto ETFs in Japan, according to the newspaper. The event was hosted by financial information provider QUICK. She added that Japan needs to improve its rules 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 currently governed by the Payment Services Act, as financial products. Once the revision is complete, brokerages including SBI Securities and Rakuten Securities are set to begin selling crypto ETFs, and major securities firms are also preparing related products for the new framework, the Nikkei said.

Japan is also pursuing tax changes. Income from crypto trading is currently taxed at rates of up to 55%, but the revision would apply a separate 20% tax rate, in line with 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 by the House of Councillors. If the bill passes in the current Diet session, it will likely take effect in 2027. The lower tax rate would be applied from Jan. 1, 2028.

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