🛑Japan's Financial Services Agency Proposes Regulatory Reform to Classify Cryptocurrencies as Securities, Potentially Paving the Way for the Spot ETF Market
Recently, the Financial Services Agency (FSA) of Japan announced that it is considering classifying crypto assets as financial products equivalent to securities. This move is inspired by the UK Financial Conduct Authority's classification of crypto assets as securities, which may provide a reference for Japan's new ETF policy.
It is reported that the FSA has formed an expert group to secretly discuss and evaluate the appropriateness of the current regulatory framework for crypto assets. According to the Nikkei News, the FSA plans to determine the direction of regulatory reform based on the group's research results by the end of June and intends to seek opinions at the Financial System Council meeting in the fall. Once discussions mature, the FSA will submit relevant legal amendments to the National Diet in 2026.
If this reform is implemented, it will mean that crypto assets will have the same legal status as securities, thereby paving the way for the approval of spot ETFs for crypto assets. Although the specifics of the new framework are still under discussion, it is foreseeable that this will have a profound impact on the cryptocurrency market.
Meanwhile, the debate over the classification of crypto assets continues in Japan. In August last year, FSA Commissioner Hidetaka Ito stated that approving cryptocurrency ETFs needs to be approached with caution. Prime Minister Shigeru Ishiba also held a reserved attitude toward public investment in cryptocurrencies. However, the domestic cryptocurrency industry has been pushing for regulatory transparency, hoping to establish a cryptocurrency ETF market in Japan.
Although cryptocurrency regulation is expected to welcome a new chapter, the Japanese government remains cautious about including Bitcoin in national reserves. Prime Minister Shigeru Ishiba recently pointed out that due to the lack of sufficient international strategic information, Japan finds it difficult to clarify its position.
Against the backdrop of growing global interest in Bitcoin reserves, the Japanese government continues to adhere to a stability-focused foreign exchange reserve strategy, while its government pension investment fund has begun exploring Bitcoin reserves to achieve portfolio diversification.
💬 Are you optimistic about Japan's development strategy after the securitization of crypto assets? From a regulatory perspective, how should we balance innovation and risk? Leave your comments and discuss in the comment section!