Key Takeaways
- • SBI Securities and Rakuten Securities are developing cryptocurrency investment trusts allowing retail investors to access Bitcoin and Ethereum through standard brokerage accounts without managing separate digital wallets or exchange accounts.
- • Japan's Financial Services Agency is working toward a 2028 revision of the Investment Trust Act to establish the regulatory framework; the government approved legislation in April 2026 reclassifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act.
- • The revised regulatory framework reduces crypto capital gains taxes to 20% from a maximum of 55%, while imposing stricter custody, security, and insider trading restrictions on institutions handling crypto investment products.
- • A Nikkei Asia survey of 18 major Japanese securities firms identified broad interest from Nomura Securities, Daiwa Securities, SMBC Nikko Securities, Mizuho Securities, and Mitsubishi UFJ Morgan Stanley Securities once regulatory approval is finalized.
- • Spot Bitcoin ETFs remain a longer-term possibility pending future FSA rulemaking, with cryptocurrency investment trusts positioned as the near-term pathway for institutional and retail crypto exposure in Japan.
Summary
Japan's major brokerages are positioning themselves to launch cryptocurrency investment trusts as part of a broader regulatory shift to bring digital assets into the mainstream financial system. SBI Securities and Rakuten Securities are leading the initiative, according to a Nikkei Asia survey, with both firms developing products designed to eliminate barriers to crypto investment by integrating offerings directly into existing brokerage platforms. SBI Global Asset Management will handle fund development, ETF structuring, and distribution within the SBI ecosystem, while Rakuten is integrating crypto investment trusts into its smartphone trading application. This approach addresses a key friction point: retail investors can gain exposure to Bitcoin and Ethereum without opening separate cryptocurrency exchange accounts or managing digital wallets.
The push comes as Japan's regulatory environment undergoes significant transformation. In April 2026, the government approved legislation reclassifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act, marking a watershed moment for the sector. The Financial Services Agency is simultaneously working toward a 2028 revision of the Investment Trust Act, which will establish the formal regulatory pathway for crypto investment trusts. The new framework imposes stricter custody and security requirements for institutions handling crypto products and adds insider trading restrictions to digital asset markets—measures intended to protect retail investors while facilitating institutional adoption.
The tax environment is shifting favorably for crypto investors. The revised legislation reduces capital gains tax rates on cryptocurrency to a flat 20% from the current maximum of 55%, a substantial reduction that could incentivize broader participation. This change levels the playing field between crypto holdings and traditional securities investments, which are already taxed at comparable rates.
Industry appetite extends well beyond the two pioneers. The Nikkei Asia survey of 18 major Japanese securities firms revealed broad interest from Nomura Securities, Daiwa Securities, SMBC Nikko Securities, Mizuho Securities, and Mitsubishi UFJ Morgan Stanley Securities. These firms are reportedly preparing to enter the market once the regulatory framework is finalized, suggesting 2028 or shortly thereafter as a realistic launch window.
Japan's existing crypto infrastructure provides a foundation for expansion. The country already operates a regulated domestic crypto exchange sector through platforms including Bitflyer, Coincheck, and SBI VC Trade. Spot Bitcoin ETFs remain under consideration for future development but are not part of the immediate rollout. The investment trust model represents the regulatory pathway Japan is prioritizing for bringing crypto to retail and institutional clients within the broader financial system.
The push comes as Japan's regulatory environment undergoes significant transformation. In April 2026, the government approved legislation reclassifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act, marking a watershed moment for the sector. The Financial Services Agency is simultaneously working toward a 2028 revision of the Investment Trust Act, which will establish the formal regulatory pathway for crypto investment trusts. The new framework imposes stricter custody and security requirements for institutions handling crypto products and adds insider trading restrictions to digital asset markets—measures intended to protect retail investors while facilitating institutional adoption.
The tax environment is shifting favorably for crypto investors. The revised legislation reduces capital gains tax rates on cryptocurrency to a flat 20% from the current maximum of 55%, a substantial reduction that could incentivize broader participation. This change levels the playing field between crypto holdings and traditional securities investments, which are already taxed at comparable rates.
Industry appetite extends well beyond the two pioneers. The Nikkei Asia survey of 18 major Japanese securities firms revealed broad interest from Nomura Securities, Daiwa Securities, SMBC Nikko Securities, Mizuho Securities, and Mitsubishi UFJ Morgan Stanley Securities. These firms are reportedly preparing to enter the market once the regulatory framework is finalized, suggesting 2028 or shortly thereafter as a realistic launch window.
Japan's existing crypto infrastructure provides a foundation for expansion. The country already operates a regulated domestic crypto exchange sector through platforms including Bitflyer, Coincheck, and SBI VC Trade. Spot Bitcoin ETFs remain under consideration for future development but are not part of the immediate rollout. The investment trust model represents the regulatory pathway Japan is prioritizing for bringing crypto to retail and institutional clients within the broader financial system.
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