Japan may be taking its biggest step yet toward regulated cryptocurrency investment products. The country’s Financial Services Agency (FSA) is reportedly exploring rule changes that could allow crypto assets to be included in exchange-traded funds (ETFs), with 2028 discussed as an early target for implementation.
According to local media outlet Nikkei, the proposed changes would expand the range of assets eligible for ETFs while strengthening investor-protection measures. If approved, the framework could open the door for Japanese retail investors to gain crypto exposure through traditional brokerage accounts rather than offshore exchanges.
Major financial institutions such as Nomura Holdings and SBI Holdings are expected to be among the first movers in developing crypto-linked ETF products once the rules are clarified.
Japan’s Financial Regulator Signals Intent, Not Final Approval
The discussions currently reflect regulatory intent rather than a confirmed policy decision. Japan’s FSA has not announced an official timeline, and any approval would require public consultations, legal revisions, and alignment with existing financial regulations.
At present, crypto ETFs remain unavailable in Japan due to strict rules governing ETF-eligible assets. While Japan has gradually refined its stance on digital assets, direct crypto-based ETFs have remained outside the regulatory framework.
Nikkei estimates that Japan’s crypto ETF market could eventually grow to around 1 trillion yen (approximately $6.4 billion), though this projection depends heavily on investor demand, market conditions, and the final shape of the regulations.
If the framework is adopted, Japan would move closer to other major financial markets such as the United States and Hong Kong, both of which approved spot crypto ETFs in 2024.
Financial Firms Position Early as Japan Embraces Fintech
Even before formal approval, industry players are already positioning themselves. SBI Holdings has previously announced plans to launch crypto-related ETF products in Japan, including a Bitcoin-XRP dual ETF and a gold-crypto hybrid structure. The company has emphasized that these plans remain subject to regulatory clearance.
Japan has also sent broader policy signals supporting digital assets. In early January, Finance Minister Satsuki Katayama highlighted the growing role of crypto ETFs in the United States, noting their use as inflation hedges and calling for Japan to pursue more advanced fintech initiatives.
Her remarks added political momentum to the ongoing regulatory discussions and reinforced the idea that crypto-linked investment products may eventually become part of Japan’s mainstream financial system.
While crypto ETFs are not yet approved, the direction of travel suggests Japan is laying the groundwork for a more accessible and regulated crypto investment landscape in the years ahead.
