- A rule change would allow Bitcoin and crypto to be added to the list of eligible assets.
- The move could unlock over 1 trillion yen ($6.4 billion) in investments.
Japan’s Financial Services Agency is considering amendments to its regulations that could welcome the country’s first crypto exchange-traded funds (ETFs). A local media report highlights that the proposed change would add crypto to Japan’s list of eligible assets, giving investors exposure to digital tokens in their portfolios.
The financial watchdog has set 2028 as its early target, while proposing stronger investor protection in the proposed change. If amended, the rule will allow access to Bitcoin and digital assets through traditional brokerage accounts.
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Move To Unlock Billion-Dollar Investments In Crypto ETFs
Japan is one of the leading countries to show interest in crypto as a financial asset class. The proposed change is expected to bring under management over 1 trillion yen ($6.4 billion) of investments in crypto ETFs.
Previously, Japanese investors faced barriers owing to the lack of a regulatory framework. This is despite major financial groups such as Nomura Holdings and SBI Holdings showing strong interest in launching the country’s first crypto ETFs.
The discussions around the crypto ETFs have grown in recent times, with the Japanese Finance Minister Satsuki Katayama emphasizing the need for advanced fintech initiatives in the country. On January 5, the minister highlighted the use of ETFs as inflation hedges in the US. Hong Kong is the other jurisdiction to allow crypto ETFs in 2024.
