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Japan Backs Crypto ETFs as Digital Assets Move Into Regulated Exchanges

Finance Minister Satsuki Katayama endorsed routing crypto access through regulated exchanges, with ETF eligibility and market safeguards still pending.

Overview

  • Katayama pledged full government support for exchange-traded crypto products and cited the U.S. ETF model as a guide.
  • A flat 20% tax on crypto profits will take effect in 2026, replacing rates that reached about 55%.
  • Regulators reclassified 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act.
  • Exchanges and issuers seeking to list crypto products must meet stricter requirements covering custody, volatility controls, risk management, and market surveillance.
  • Authorities have not announced launch dates or specific assets for potential ETFs, while investors will be able to carry forward crypto trading losses for up to three years.