In a recent move to boost the growth of crypto investment products in Japan, a consortium of Japanese companies has announced that future exchange-traded funds (ETFs) established in the region will focus on Bitcoin (BTC) and Ethereum (ETH). Recommended.
The recommendation comes amid debate over whether Japan should follow the United States and other countries that have already approved crypto-backed ETFs.
Movement to approve virtual currency ETFs
It is no longer news that after years of regulatory resistance, the recent introduction of crypto ETFs in other major countries such as the US and Hong Kong is considered a milestone for the digital asset industry.
Despite the welcome reception of crypto ETFs from these countries, Japan, on the other hand, has so far been cautious on this front, with Financial Services Agency (FSA) officials previously commenting on the benefits of these ETFs. He had expressed reservations.
However, as of October 25, certain groups, including prominent financial institutions, are urging the country's regulators to prioritize Bitcoin and Ethereum ETFs based on “market value and long-term performance.” It seems there is. For medium- to long-term asset formation.
In particular, the group's proposal emphasizes the credibility of Bitcoin and Ethereum, major players in the overall digital currency market, pointing to their track records and large market capitalizations.
As Japan explores a possible change in its stance on crypto ETFs, the coalition appears to be ensuring a continued focus on established assets such as Bitcoin and Ethereum.
Recommendations for tax reform and regulatory review
In addition to recommending that Bitcoin and Ethereum be prioritized in potential ETF products, the coalition recommended that Japan reconsider its tax policy on crypto income.
Japan's tax rate on crypto profits can reach 55%, which many argue is a deterrent for retail and institutional investors.
The group proposed that separating the taxation of income earned from virtual currencies could make Japan a more “competitive” destination for digital currency investments.
Notably, members of this coalition include Mitsubishi UFJ Trust and Banking Corporation, Sumitomo Mitsui Trust Bank, Ltd., virtual currency exchange BitFlyer, Inc., and securities companies such as Nomura Securities Co., Ltd. and SBI Securities Co., Ltd. , which includes major companies in Japan's financial world.
These agencies, which have extensive experience in the industry, jointly express their concerns and recommendations as a collective rather than individual opinion.
The coalition's insights come as Japan's digital currency regulatory environment is under scrutiny, with the Financial Services Agency confirming its intention to review its regulatory policies. However, this review is expected to take time, and its outcome remains uncertain.
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