Japan Prepares Its Biggest Crypto Policy Shift Yet With ETF Approval and Major Tax Cuts

• Bitcoin-first investment firm MetaPlanet is Japan’s fastest-growing stock, which has risen 3,575% in the past 12 months.
• There are no Bitcoin ETFs trading in Japan due to its stringent crypto regulations.
• Japan’s SoftBank has invested billions in U.S. crypto and AI firms.

A fresh wave of bullish crypto optimism could soon wash over Japan as reports emerge that its financial watchdog is considering major tax cuts on crypto profits and regulatory revisions that may pave the way for spot crypto exchange-traded funds (ETFs) in the nation.

Japan Crypto Overhaul

As per local media, Japan’s Financial Services Agency (FSA) is mulling major changes to its crypto regulations , which could see crypto classified as securities and reduce the crypto gains tax burden from a tax rate of 55% to a favorable 20%.

Furthermore, this could open the doors for spot Bitcoin ETFs to launch. As the fourth-largest economy in the world, such a shift in policy could attract even more retail and institutional investment into crypto, further cementing its position as a global crypto hub.

That said, these are just discussions and proposals circulating in Japan’s government. If the FSA is able to amend the current laws, there would be several hurdles to clear, which could extend the decision-making process into 2026.

The development follows reports that Metaplanet, Japan’s largest Bitcoin company, has become the fastest-growing stock in Japan thanks to its pivot to a BTC-first strategy in April 2024.

The firm has attracted around 50,000 backers, the majority of whom are retail investors, indicating a burgeoning appetite for crypto and crypto-related investments in Japan.

The news also comes as Donald Trump’s reappointment to U.S. President sent crypto markets into bullish euphoria.

In December 2024, Japanese lawmakers were eager to follow in his footsteps and proposed that—at a minimum—Japan’s government explore the possibility of establishing a Bitcoin Strategic Reserve.

U.S. Ties

U.S.-Japan relations have deepened considerably following Trump’s return to the White House. Most notable is the pledge from Japan’s SoftBank to invest billions upon billions into the U.S. economy and create thousands of jobs.

With crypto, SoftBank made a historic $50 million investment in U.S. crypto mining data center firm Cipher Mining, which will allow the latter to expand its output capacity significantly.

Last week, the firm announced it would replace Microsoft as OpenAI’s  biggest investor as it begins finalizing a $40 billion investment in the firm.

This investment is part of the U.S. bid to lead in artificial intelligence (AI) with the “ Stargate ” project, of which SoftBank is a lead partner and initial equity funder.