- Japanese firms advocate Bitcoin, Ether focus for potential crypto ETFs, citing stability.
- Proposal for separate tax on crypto income aims to boost local investment in digital assets.
- Japan’s FSA cautiously reviews crypto ETF regulation with no conclusions reached on future policies.
A group of Japanese financial firms, including trust banks, crypto exchanges, and brokerages, wants discussions about exchange-traded funds (ETFs) for crypto assets in Japan to center on Bitcoin and Ether.
These companies say that Bitcoin and Ether’s large market value and established track record make them suitable for long-term investment in Japan.
In addition, the group has released formal recommendations stating that Bitcoin and Ether’s global market presence could make them safer choices for investors.
Coalition Proposes Tax Reform for Crypto Income
The coalition has also suggested changes to Japan’s tax policies on crypto income. Japan’s tax rate on crypto profits can be as high as 55%, which may discourage local investment in digital assets.
The coalition recommends a separate tax system for cryptocurrency income to create a fairer approach and encourage investor participation.
Japan’s Cautious Approach to Crypto ETFs
Japan has been more cautious about cryptocurrencies than markets like the United States, which launched its first Bitcoin and Ether ETFs this year. While this was seen as progress for the digital asset industry in the US, Japan’s Financial Services Agency (FSA) remains hesitant.
Read also: Japan Could Ease Crypto Taxes and Allow Token ETFs
FSA leadership has expressed concerns about the benefits of crypto ETFs and stated that further review is needed before creating regulations in Japan.
Potential Changes to Japan’s Crypto Regulations
An FSA official has said that the agency is reviewing its stance on crypto regulation. This review could lead to future fund investments in crypto and lower taxes, but the FSA says that there is no guaranteed outcome and the review may take time.
The official noted that the review will consider financial safety and tax fairness but has not yet reached any conclusions.
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