In a recent move to boost the growth of crypto investment products in Japan, a coalition of Japanese companies has recommended that any future exchange-traded funds (ETFs) in the region should focus on Bitcoin (BTC) and Ethereum (ETH).
This recommendation comes as Japan debates whether to follow in the footsteps of the US and other nations that have already approved cryptocurrency-backed ETFs.
The push for Crypto ETF approval
It is no longer news that the recent introduction of crypto ETFs in the US and other major countries such as Hong Kong It is considered a milestone for the digital asset industry, after years of regulatory resistance.
Despite the reception crypto ETFs have received from these countries, Japan, on the other hand, has so far been cautious on this front, with officials at the Financial Services Agency (FSA) previously expressing reservations about the benefits. of these ETFs.
However, as of October 25, a certain group, including prominent financial institutions, appears to be lobbying and urging the country’s regulator to prioritize bitcoin and Ethereum ETFs due to their “market value and long-term performance”, which make them “suitable” for asset creation over medium and long-term horizons.
In particular, the group’s proposal highlights the perceived reliability of Bitcoin and Ethereum, noting their track record and important market caps, which are key players in the overall digital currency market.
As Japan explores a possible change in its stance on crypto ETFs, this coalition appears to ensure that the focus remains on well-established assets like Bitcoin and Ethereum.
Recommendations for tax reform and regulatory review
In addition to recommending that Bitcoin and Ethereum be prioritized in potential ETF offerings, the coalition also recommended that Japan reconsider your tax policies on crypto income.
Japan’s tax rate on crypto profits can be as high as 55%, which many argue is a deterrent for individual and institutional investors.
The group suggested that a separation of the tax on income earned from cryptocurrencies could help make Japan a more “competitive” destination for digital currency investment.
In particular, members of this coalition include key players in Japan’s financial landscapesuch as Mitsubishi UFJ Trust and Banking Corp., Sumitomo Mitsui Trust Bank Ltd., cryptocurrency exchange bitFlyer Inc. and brokerage firms such as Nomura Securities Co. and SBI Securities Co.
These institutions with vast industry experience have collectively expressed their concerns and recommendations as a consensus rather than individual opinions.
The coalition’s ideas come as Japan’s digital currency regulatory environment is under close scrutiny and the FSA has confirmed its intention to review its regulatory policies. However, this review is expected to take time and its outcome remains uncertain.
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