In a recent move to boost the growth of cryptocurrency investment products in Japan, a coalition of Japanese companies has done so Recommended Any upcoming ETFs in the region should focus on Bitcoin (BTC) and Ethereum (ETH).
This recommendation comes as Japan debates whether to follow the United States and other countries that have already approved cryptocurrency-backed ETFs.
Lobbying for approval of cryptocurrency ETFs
It is no longer news that the recent introduction of cryptocurrency ETFs in the US and other major countries such as Hong Kong is considered a milestone in the digital assets industry, after years of regulatory resistance.
Despite the embrace of crypto ETFs from these countries, Japan, on the other hand, has so far been cautious on this front, with officials from the Financial Services Agency (FSA) previously expressing reservations about the merits of these ETFs.
However, as of October 25, a certain group, which includes prominent financial institutions, appears to be pushing and urging the country’s regulatory body to prioritize Bitcoin and Ethereum ETFs due to their “market capitalization and long-term performance” making them a “well-suited fit.” “To build assets in the medium and long term.
In particular, the group’s proposal highlights the perceived reliability of Bitcoin and Ethereum, pointing to their track records, large market caps, and being major players in the overall digital currency market.
As Japan explores a potential shift in its stance on cryptocurrency ETFs, this alliance appears to ensure that the focus remains on established assets such as 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 advised that Japan reconsider its tax policies on cryptocurrency income.
Japan’s tax rate on cryptocurrency gains can be as high as 55%, which many say is a deterrent to individual and institutional investors.
The group suggested that separating the tax on income earned from cryptocurrencies could help make Japan a more “competitive” destination for investing in cryptocurrencies.
It is worth noting that the members of this alliance include major players in Japan’s financial scene, such 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 organizations with extensive industry experience have collectively expressed their concerns and recommendations as a consensus rather than individual opinions.
The alliance’s visions come as Japan’s digital currency regulatory environment is under scrutiny, and the Financial Services Authority has confirmed its intention to review its regulatory policies. However, this review is expected to take some time, and its results remain uncertain.
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