Japan Exchange Group plans crypto ETFs by 2027

Japan Exchange Group, the operator of Japan's largest securities exchange, plans to launch cryptocurrency exchange-traded funds as early as 2027, once regulators finalize legal and tax reforms, according to CEO Hiromi Yamaji.

Yamaji shared the timeline in a recent interview, noting that asset managers have expressed strong interest in developing such products. The exchange has begun preparations but will proceed only after amendments to the Financial Instruments and Exchange Act classify digital assets as financial instruments, a change slated for 2026. Officials are also considering tax reforms to lower the rate on cryptocurrency gains from 55 percent under miscellaneous income to a flat 20 percent, aligning it with treatment for stocks and investment trusts.

These developments build on Japan's efforts to integrate digital assets into its regulated financial markets. The exchange group has incorporated cryptocurrency ETFs into its mid-term strategy to diversify offerings beyond traditional stocks and futures, aiming to attract institutional investors and boost competitiveness. Investment firms including Nomura Asset Management, SBI Global Asset Management and Daiwa Asset...