Japan to Approve Spot Crypto ETFs by 2028 Amid Tax Cut Plans

Japan, one of Asia’s biggest financial market has taken a major step into the crypto investment space, with plans to approve spot cryptocurrency exchange-traded funds (ETFs) as early as 2028.

If approved, this could make investing in Bitcoin and other digital assets much easier through regulated stock market products.

Japan to Approve Spot Crypto ETFs by 2028

According to recent reports, Japan’s Financial Services Agency (FSA) is expected to lift its long-standing ban on crypto exchange-traded funds as early as 2028. 

Under the new framework, Bitcoin would be added as an eligible asset, allowing investors to gain exposure through stock exchanges instead of crypto platforms. This change is aimed at improving investor protection while expanding access to digital assets. 

Today, many retail investors in Japan face strict exchange rules and complex wallet requirements, which have slowed crypto adoption.

Nomura and SBI Lead the ETF Push

Major financial institutions, including Nomura Holdings and SBI Holdings, are preparing to launch the first spot crypto ETFs on the Tokyo Stock Exchange once regulatory approval is granted. These firms already manage trillions of yen in assets and are expected to attract both retail and institutional capital.

Some reports claim that SBI Group has taken an additional step by filing for a dual-asset crypto ETF combining Bitcoin and XRP. This would allow investors to gain exposure to two major cryptocurrencies through a single regulated product.

Global Pressure Builds on Japan

Japan’s move comes as crypto ETFs gain traction globally. In the United States, spot Bitcoin ETFs now hold more than $120 billion in net assets. However, Hong Kong launched Asia’s first crypto ETFs in 2024, while South Korea is working toward a crypto ETF framework by Q1 2026.

Reacting to Japan’s timeline, SBI CEO Yoshitaka Kitao reposted the news with the comment “too late,” pointing to Japan’s cautious pace despite recognizing Bitcoin as legal tender back in 2017.

Tax Reduction From 55% to 20%

The FSA plans to submit new crypto legislation to Japan’s parliament in 2026. A key proposal would reclassify cryptocurrencies under the Financial Instruments and Exchange Act, reducing the crypto tax rate from as high as 55% to a flat 20%.

If approved, this tax cut could significantly boost investor interest and position Japan as a stronger player in Asia’s growing crypto ETF market.

While Japan may be entering late, strong institutions, lower taxes, and clearer rules could still make its crypto ETF launch highly impactful.