Japan is moving closer to bringing cryptocurrency further into its mainstream financial system after signaling support for crypto exchange-traded funds. Finance Minister Satsuki Katayama said the government continues preparing a legal framework that would allow these investment products in the domestic market.
The announcement reflects Japan’s broader effort to modernize digital asset regulations while attracting institutional participation. Consequently, the planned changes could strengthen investor confidence, expand regulated investment options, and reinforce Japan’s position as one of Asia’s leading digital asset markets.
Japan Advances Crypto Regulation
Katayama revealed the government’s direction during the Open QUICK 2026 seminar on July 10. Besides supporting crypto ETFs, lawmakers recently approved revisions that shift oversight of spot cryptocurrencies to the Financial Instruments and Exchange Act.
This move places digital assets alongside traditional financial products. Moreover, the updated framework should improve investor protection and encourage wider participation from financial institutions.
SBI Eyes Early Market Leadership
SBI Holdings continues positioning itself for the expected regulatory shift. The company previously proposed a dual-asset ETF that combines Bitcoin and XRP exposure.
Additionally, it outlined a hybrid investment trust with 51% allocated to gold ETFs and 49% to crypto ETFs. SBI believes this structure could appeal to cautious investors seeking portfolio diversification.
Furthermore, the company targets approximately ¥5 trillion, or about $32 billion, in assets under management within three years. Meanwhile, the initiative could intensify competition with major financial groups, including Nomura and Rakuten Securities, as Japan’s regulated crypto investment market expands.
Related: Binance CEO Says 70% of EU Crypto Withdrawals Shifted to Self-Custody After MiCA Deadline
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