Japan is considering a major policy shift for digital assets. A bill now under discussion in parliament would formally classify cryptocurrencies as financial products and reduce the tax on crypto gains from the current maximum of 55% to 20%. If passed, the law would take effect in fiscal 2027, putting crypto profits in the same tax category as gains from shares and bonds.
The proposed tax cut stands out because it directly targets one of the barriers cited by industry participants. According to the report, representatives from the sector have argued that the previous top rate of 55% has weighed heavily on the growth of Japan’s retail crypto market. A lower rate would materially change the treatment of crypto gains for individual investors.
Brokerages prepare for crypto fund offerings
A Nikkei survey of 18 major brokerages found that 11 are considering adding crypto-based investment funds to their lineups. Large financial groups including Nomura, Daiwa, SMBC Nikko, Mizuho, and Mitsubishi UFJ Morgan Stanley have all signaled plans to roll out crypto investment products.
Some firms have already moved beyond preliminary talks. Nomura and Daiwa have announced internal preparations for new crypto fund initiatives. SMBC Group has set up a dedicated working team, while Mizuho affiliate Asset Management One has started research. Even so, most institutions are still watching the regulatory process closely before making a final push.
FSA works on rules for funds and ETFs holding BTC and ETH
Japan’s Financial Services Agency is also advancing legal revisions that would let investment funds and ETFs include cryptocurrencies. Under the planned update, the Investment Funds Act would add highly liquid assets such as BTC and ETH to the list of approved investment products. The new framework is expected to come into force before 2028.
That change would reshape access for local investors. Until now, Japanese individuals generally needed exchange accounts or digital wallets to trade crypto directly. Crypto funds would allow digital-asset exposure through standard investment accounts, in a format more familiar to traditional brokerage clients.
Custody and audit standards would also tighten
The regulatory package is not limited to market access. It also aims to strengthen security standards for the custody and management of crypto assets. Institutions that hold crypto in their portfolios would face greater responsibilities, and detailed audits are planned in particular for large exchanges and fund providers.
By the end of April, the total value of the global crypto market had reached $2.55 trillion. Bitcoin ETFs are already available in the US, Canada, Hong Kong, and Australia, while investors in Japan have so far lacked similar products. At the same time, SBI Securities and Rakuten Securities are accelerating work on new crypto investment solutions ahead of the expected 2028 regulatory framework.