Japan Considers Approving Cryptocurrency ETFs, Industry Groups Say They Should Focus on Bitcoin and Ether

Japan is considering whether to follow overseas initiatives and allow ETFs to invest in cryptocurrencies, according to Golden Ten. Some Japanese companies say the discussion should focus on major tokens such as bitcoin and ethereum.

Organizations including major trust banks such as Mitsubishi UFJ and Sumitomo Mitsui, cryptocurrency exchanges such as bitFlyer, and brokerage firms such as Nomura Securities and SBI Securities have put forward a series of proposals, arguing that the large market capitalization of these cryptocurrencies and their “stable returns” make them suitable for investors to accumulate assets over the medium to long term. The proposal also calls for the taxation of cryptocurrencies.

In addition, the proposals call for a review of the tax system, including the separation of income taxation. So far, Japanese regulators have taken a more cautious approach. Officials at Japan's Financial Services Agency said last month that the agency would review its approach to cryptocurrency regulation, an assessment that has no foregone conclusions and could take some time to complete.