Japan’s Asset Managers Prepare for Major Entry Into Crypto as Regulators Signal Sweeping Reforms
- Japan prepares new rules that allow asset managers to add crypto to investment trusts under stronger oversight.
- Major firms plan crypto product launches as demand grows and new laws aim to align digital assets with markets.
- A flat 20% tax aims to boost crypto participation and support wider adoption through regulated products.
Japan’s largest asset managers are preparing to enter the crypto market as regulators advance a wide set of reforms. The Financial Services Agency is working on proposals that could take effect in 2026. These proposals aim to update rules that currently block digital assets from investment trust products.
The plan will allow companies to include cryptocurrencies in regulated financial instruments. The reforms will also redefine digital assets within the Financial Instruments and Exchange Act. This move will place crypto in the same category as stocks and bonds.
Firms Position for New Market Access
SBI Global Asset Management is taking an early lead. The firm plans to launch crypto investment trusts and funds centered on Bitcoin and Ethereum. It also intends to introduce diversified digital asset products. SBI is targeting assets under management of ¥5 trillion within three years. Its strategy shows how large institutions expect strong demand once legal barriers fall.
Other major firms are preparing for similar moves. A survey by Nikkei found that six leading companies are developing internal plans. These include Daiwa Asset Management, Asset Management One, Amova, and Mitsubishi UFJ. Nomura Asset Management is also creating internal teams as it prepares for future rollouts. Their coordinated actions show a broad expectation of rapid market growth.
Tax Reform Supports Wider Participation
Japan’s overhaul includes a major tax change. Crypto gains are currently taxed at rates reaching 55%. The planned legislation will replace this with a flat 20% tax. This matches the tax rate applied to traditional investment income. The new approach aims to create fairness across asset classes and stimulate broader participation.
The reforms will be submitted during the 2026 parliamentary session. Once approved, the Investment Trust Act will be amended. This update will officially legalize crypto investment trusts in Japan. The proposal sits within a wider effort to strengthen oversight and improve investor protection.
Strengthened Oversight and New Market Models
The FSA is also expanding digital asset rules on several fronts. In November, the agency proposed tighter custody requirements. Only licensed custodians will be allowed to hold crypto once the changes take effect. The plan follows several global security incidents involving digital assets. Japan aims to prevent similar disruptions within its domestic market.
The country is examining stablecoin development as well. Three major banks recently backed a yen-based stablecoin project. This forms part of a national strategy to build a resilient digital finance structure. The rise of more than 13 million crypto trading accounts in Japan shows strong local interest. Officials see investment trusts as a path to mobilize household savings.
Global Context Drives Local Strategy
The United States has already influenced global regulatory thinking. By September, BlackRock’s Bitcoin ETF held more than $90 billion in assets. Japan’s new strategy seeks to follow that market lead. Asset managers in Japan are preparing early so they can secure market share once new rules are implemented.
Crypto investment trusts will give investors regulated and tax-efficient access to digital assets. These products will also help integrate crypto into Japan’s wider financial system.
