Japan’s financial institutions advocate for major crypto ETFs
Their recommendations include creating crypto-focused ETFs and reviewing the taxation system to implement a distinct tax for crypto earnings, aimed at making the market more investor-friendly.
A coalition of major Japanese financial institutions has called on the government to prioritise top cryptocurrencies like Bitcoin and Ethereum if it decides to approve exchange-traded funds (ETFs) for digital assets. The group, which includes financial heavyweights such as Mitsubishi UFJ Trust and Banking Corp. and Nomura Securities, submitted recommendations on 25 October for creating crypto-focused ETFs, highlighting the importance of well-established tokens with significant market value.
In their proposal, the group also urged Japanese regulators to review the country’s taxation system, suggesting a distinct tax on crypto-derived earnings. This request reflects the institutions’ belief that Bitcoin and Ethereum’s established presence and stability could appeal to investors interested in building long-term wealth.
Despite these proposals, Japanese regulators remain cautious, with officials citing regulatory concerns and public scepticism following past issues, including the Mt. Gox collapse. Nevertheless, several firms remain optimistic about crypto’s future in Japan, as seen by partnerships like that of SBI Holdings and Franklin Templeton, aimed at expanding crypto offerings. Whilst Japan debates, nations such as the US, Hong Kong, and Australia have already approved spot crypto ETFs, creating a trend Japan may soon follow.
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