Japan’s Finance Minister Gaiko Katayama signals that crypto ETFs should be unbanned: Japan can’t afford to stay out any longer.

Japan’s Minister of Finance and Financial Services, Satsuki Katayama, on Friday (7/10), hinted at the opening keynote of the “OpenQUICK 2026” seminar hosted by financial information services provider QUICK that, as crypto-asset ETFs are seeing growing scale in overseas trading, “she hopes to push forward research in the direction of allowing crypto-asset ETFs in Japan.” The remark echoes Japan’s ongoing legislative efforts to include cryptocurrencies in the Financial Instruments and Exchange Act for the first time, which is seen as opening another door for Japan’s asset management market.
(Background recap: Japan upgrades cryptocurrencies to financial instruments under revised financial laws, makes insider trading a criminal offense, with ETF launches in 2028)
(Background supplement: Japan plans to introduce a “separate taxation” regime for cryptoassets: spot, derivatives, and ETF trades are taxed separately, with the tax rate unified at 20%)

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• The US goes first, and Japan rushes to catch up
• Cut the rate from 55% to 20%
• Institutions are already lined up at the door

Key takeaways

• On 7/10 at OpenQUICK 2026, Japan’s Finance Minister Satsuki Katayama signaled that she wants to review the direction of allowing crypto-asset ETFs
• In April, Japan’s Cabinet passed amendments to the Financial Instruments and Exchange Act, upgrading cryptoassets to financial instruments, with implementation expected in 2027
• The tax rate on crypto gains will shift from the current highest 55% comprehensive taxation to a flat ~20% separate taxation starting in 2028

Japan’s Minister of Finance and Financial Services, Satsuki Katayama (Satsuki Katayama), on July 10 attended the opening ceremony of “OpenQUICK 2026.” In her keynote address, she spoke very plainly: as ETFs that use crypto assets as collateral overseas are getting bigger and bigger, Japan should study the direction of allowing them, and it also needs to prepare the trading environment accordingly. She further set 2026 as Japan’s “digital year.”

The person delivering this message is the current minister in charge of Japan’s finance and financial regulation—effectively the first time, from an official podium in public, that “allowing crypto ETFs” has been framed as a policy direction.

The US goes first, and Japan rushes to catch up

Katayama is looking squarely at the United States. Spot Bitcoin and Ethereum ETFs have been trading on US exchanges for a while now, and the Trump administration is even promoting crypto assets as a national strategy. She was not thinking this way only today; back in December 2024, she posted on X saying that US ETFs have already become a tool for people to fight inflation, and Japan should catch up—and, along the way, cut the crypto profit tax rate from the highest 55% down to the same 20% as financial products.

From posts on X to official remarks in a formal setting, Katayama’s pro-crypto stance has been officially turned into a policy direction.

But to actually get ETFs listed, Japan needs to act on the law first. In April, Japan’s Cabinet approved amendments to the Financial Instruments and Exchange Act, upgrading cryptoassets from the past “payment instruments” into regulated “financial instruments,” placing them at the same level as stocks and bonds. In June, the bill was passed by a vote in the House of Representatives, with implementation expected in 2027. This step is the legal prerequisite for crypto ETFs to be listed on securities exchanges.

Cut the rate from 55% to 20%

The package also includes taxes. Under the 2026 fiscal-year tax reform outline, profits from cryptoassets would shift to “taxation via separate filing,” at a flat ~20%, on the same tier as stocks and investment trusts. Compared with the current highest 55% comprehensive taxation, this is easing the pressure on Japanese crypto investors. The new system applies to transfers from January 1, 2028, and it also adds a mechanism for carrying forward losses for 3 years.

ETFs themselves are also written into the outline, stating that they can be formed on the premise of amendments to the enforcement order under the Investment Trusts Act. In other words, once the Diet completes the process, it can take effect.

Institutions are already lined up at the door

With the policy direction shifting, institutions’ moves have started accelerating in tandem. Nomura Securities and SBI are preparing crypto-related investment trusts, waiting only for the Financial Services Agency’s nod; SBI is even arranging Japan’s first XRP ETF. A representative from the Tokyo Stock Exchange also said that, as long as the amendments are finalized, ETF trading could start as early as 2027.

From shouting on X to delivering the keynote—now the law has been amended, taxes have been lowered, and institutions are already ready with the materials. Japan’s door appears to truly be opening; the remaining work is simply to roll out the implementation details one by one.

Common questions

When will Japan allow crypto-asset ETFs?

Finance Minister Satsuki Katayama has stated that she wants to study the direction toward allowing them, but she has not yet given a definite timeline. The premise is that the amendments to the Financial Instruments and Exchange Act will take effect in 2027. A representative of the Tokyo Stock Exchange estimates that ETF trading could begin as early as 2027 at the latest.

How will the tax rate for crypto in Japan change?

According to the 2026 fiscal-year tax reform outline, crypto gains will move from the current highest 55% comprehensive taxation to a flat ~20% separate filing-based taxation, on par with stocks. It will apply to transfers starting from January 1, 2028, and it will also add a mechanism for carrying forward losses for 3 years.