Japan has put two key pieces of its crypto ETF framework on the calendar, with legal reclassification and a new tax regime both pointing to 2028.
On July 15, Japan’s parliament passed amendments on third reading that move crypto assets from the framework identified in the source as the Funds Settlement Act into the Financial Instruments and Exchange Act. According to BlockTempo, that shift gives crypto assets a clearer standing as investment products rather than only payment tools, creating a legal basis for crypto ETF issuance.
Tax changes are scheduled for Jan. 1, 2028
The tax side is now tied to the 2026 tax reform outline. Eligible crypto assets are set to be taxed at a 20.315% separate rate, the same framework used for stocks, with implementation scheduled for Jan. 1, 2028.
The report says that under the current setup, taxation can reach as high as 55% under comprehensive taxation. If the reform proceeds on schedule, Japan’s crypto ETF market could list as early as 2028.
SBI’s Tomoya Asakura says 1% of household assets would be enough to surpass the U.S. market
Tomoya Asakura, president of SBI Global Asset Management, used WebX 2026 to make the case for how large the market could become. Japan’s household financial assets total about JPY 2,400 trillion, he said. If just 1% of that moves into crypto ETFs, the resulting market would exceed the entire current U.S. market.
Using the exchange rate in the article, that 1% comes to about $160 billion.
Distribution, not demand, is the main constraint in his view
Asakura’s argument is that the money is not concentrated in securities accounts. If ETFs are sold only through brokerages, their reach will stay limited. He proposed wrapping ETFs into publicly offered investment trusts, which in Japan can be sold not only by securities firms but also by regional banks, Japan Post Bank and post offices nationwide.
“In Japan, incorporating ETFs into investment trusts has more potential,” Asakura said, according to the source.
He framed crypto exposure as part of long-term diversified asset allocation, delivered through lump-sum purchases or recurring contributions, and distributed through existing financial institutions to ordinary households. He also said, “Otherwise Japan will end up like the U.S., where it only becomes a speculative product in the end.”
The timetable now points to 2028
Based on the details cited by BlockTempo, the path to a Japanese crypto ETF market now rests on two formal steps. The first is the July 15 legal amendment that places crypto assets under the Financial Instruments and Exchange Act. The second is the separate 20.315% tax treatment in the 2026 tax reform outline, set to begin on Jan. 1, 2028.
The article adds that market expectations point to listings as early as 2028, and that Nomura Asset Management and SBI-affiliated fund management companies are already developing products.
What the report says on tax and product timing
- Eligible crypto assets are slated to move from comprehensive taxation, which the article says can reach 55%, to a 20.315% separate tax regime.
- The new tax treatment is scheduled to take effect on Jan. 1, 2028.
- Crypto ETFs could list as early as the same year.
- Broader distribution through banks, Japan Post Bank and post offices is presented as a central condition for scaling retail access.
The BlockTempo report says its story was compiled with reference to Japanese media including NADA NEWS and CoinPost.