A coalition of Japanese financial firms, including trust banks, crypto exchanges, and brokerages, is pushing for Bitcoin and Ether-focused exchange-traded funds (ETFs) in Japan. With their large market values and established records, this group believes that Bitcoin and Ether make strong candidates for long-term investment. In a formal recommendation, the coalition argues that these assets’ global presence and acceptance provide a safety measure for investors and could help expand Japan’s crypto market.
Beyond advocating for ETFs, the coalition also calls for adjustments to Japan’s crypto tax policies. At present, Japan has established a specific tax for the profit received from cryptocurrency up to 55%, with opponents claiming that such an indicator will discourage investors from Japan. The coalition also proposes a new tax regime for crypto income, and investors should be encouraged to achieve such a fair structure.
Also Read: DPP Leader Yuichiro Tamaki Proposes Crypto Tax Plan Ahead of Japan Election
Japan’s Conservative Approach to Crypto ETFs
Japan has maintained a conservative stance on cryptocurrencies, in contrast to the United States, which recently introduced its first Bitcoin and Ether ETFs. However, this development was positive for the U.S. digital asset market, and although Japan’s Financial Services Agency (FSA) has acted positively toward cryptocurrencies, the agency is still a bit apprehensive. A few days ago, the U.K.’s FSA expressed its doubt over the usefulness of the crypto-ETFs, acknowledging that it would require new, deeper analysis before crafting the necessary regulations.
An official in the FSA has admitted that the agency is considering reviewing its approach to regulating cryptocurrencies. While this review may create new crypto-related funds and even lead to decreasing tax rates, the FSA has stated that it’s ineffective in guaranteeing the outcome and may take some time.
As the FSA’s review considers investor protection and tax fairness, Japanese financial firms hope their advocacy will encourage more inclusive and practical regulations in the crypto space.
Conclusion
Japan’s regulatory approach may see significant changes with ongoing calls for Bitcoin and Ether ETFs and adjusted tax policies. The FSA’s review could impact the country’s stance on digital assets, potentially aligning Japan’s crypto market with broader global trends.
Also Read: Japan’s Financial Services Agency to Reform Crypto Gaming Regulations for Business Growth
