Japan's Finance Minister Satsuki Katayama: Japan's Cryptocurrency ETF Should Consider Lifting Restrictions

Coin Circle (120btc.CoM): Japan's Finance and Financial Services Minister Satsuki Katayama attended the "Open QUICK 2026" opening ceremony on July 10, where she made her stance clear in her keynote speech: as overseas ETFs backed by crypto assets continue to grow, Japan should consider lifting restrictions and also prepare the trading environment accordingly. She has positioned 2026 as Japan's "Digital Year."

This statement comes from the current minister in charge of Japan's finance and financial supervision, marking the first time an official has publicly articulated the policy direction of "lifting restrictions on cryptocurrency ETFs."

The U.S. Leads, Japan Rushes to Catch Up

Satsuki Katayama is looking at the United States. Bitcoin and Ethereum spot ETFs have already been listed in the U.S., and the Trump administration has promoted crypto assets as a national strategy. She has not just started thinking this way; as early as December 2024, she hinted on X that U.S. ETFs have become a tool for the public to combat inflation, and Japan needs to catch up, while also reducing the crypto profit tax rate from the highest 55% to the same 20% as financial products.

From X posts to official platforms, Satsuki Katayama has officially turned her crypto-friendly stance into a policy direction.

However, for ETFs to be listed, legal changes must occur first. In April, the Japanese Cabinet approved an amendment to the Financial Instruments and Exchange Act, upgrading crypto assets from a "payment tool" to a regulated "financial product," placing them on the same level as stocks and bonds; the House of Representatives passed it in June, with implementation expected in 2027. This step is a legal prerequisite for crypto ETFs to be listed on exchanges.

Tax Rate Cut from 55% to 20%

Accompanying this is tax reform. According to the 2026 tax reform outline, profits from crypto assets will be taxed at a flat rate of about 20%, similar to stocks and investment trusts. Compared to the current maximum comprehensive tax rate of 55%, this alleviates the burden on Japanese crypto investors. The new system will apply to transfers starting January 1, 2028, and introduces a mechanism for carrying forward losses for three years.

ETFs themselves are also included in the outline, stating that they can be formed based on amendments to the Investment Trust Act. In other words, once the National Assembly passes it, it can take effect.

Institutions Are Already Lining Up

With the shift in policy direction, institutional actions have accelerated. Nomura Securities and SBI are preparing crypto-related investment trusts, awaiting approval from the Financial Services Agency; SBI is even organizing Japan's first XRP ETF. A representative from the Tokyo Stock Exchange stated that as long as the law is passed, ETF trading could start as early as 2027.

From X posts to keynote speeches, the law has been amended, taxes have been reduced, and institutions are ready; it seems that Japan's door is truly about to open, with only the implementation details remaining to be finalized.

Frequently Asked Questions

When will Japan lift restrictions on cryptocurrency ETFs?

Finance Minister Satsuki Katayama has expressed her intention to consider lifting restrictions, but no specific timeline has been provided. The prerequisite is that the amendment to the Financial Instruments and Exchange Act will take effect in 2027, and representatives from the Tokyo Stock Exchange estimate that ETF trading could begin as early as 2027.

How will Japan's cryptocurrency tax rates change?

According to the 2026 tax reform outline, crypto profits will be taxed at a flat rate of about 20%, down from the current maximum comprehensive tax rate of 55%, aligning with stocks, applicable to transfers starting January 1, 2028, and introducing a mechanism for carrying forward losses for three years.