Japan’s asset management industry is quietly positioning itself for a landmark shift: the introduction of the country’s first cryptocurrency-based investment trusts.
According to a new report from Nikkei, six major firms, including Daiwa Asset Management, Asset Management One, Amova Asset Management, and Mitsubishi UFJ Asset Management, have begun early-stage planning for crypto investment products as regulators advance a sweeping reform of digital asset rules.
Wealth Managers Move Ahead as Policymakers Signal Green Light
Under current law, crypto assets cannot be included in investment trusts, limiting exposure for retail and institutional investors alike. That barrier may soon fall. Japan’s Financial Services Agency (FSA) is weighing whether to reclassify cryptocurrencies under the Financial Instruments and Exchange Act, the same framework that governs securities, rather than the Payment Services Act.
This shift would transform digital assets into regulated financial instruments, opening the door for packaged investment products and placing crypto alongside stocks, bonds, and ETFs.
Flat Tax Proposal Reshapes Crypto’s Investment Appeal
The broader reform effort, first outlined earlier this year, also includes a proposal to lower the tax rate on crypto capital gains for individuals from a punitive 55% top rate to a flat 20%. The change mirrors the taxation of traditional securities and would remove one of the most significant barriers preventing Japanese investors from allocating to digital assets.
Legislative Roadmap for 2026
According to Nikkei, the FSA aims to finalize the legal overhaul during the 2026 ordinary parliamentary session. Once implemented, the changes would prompt amendments to the Investment Trust Act, the key step required for asset managers to offer crypto-based trusts to the public.
Initial offerings would likely target retail investors, with institutional products following as regulatory clarity matures.
A Turning Point for Japan’s Digital Asset Market
If approved, the reforms would mark Japan’s biggest modernization of crypto rules in nearly a decade. They would also position the country as one of the first major economies to formally integrate crypto into investment trust structures, a move that could reshape how both domestic and global investors access digital assets.
For Japan’s top wealth managers, the groundwork has already begun. The next catalyst will come from lawmakers, and if the timetable holds, Japan’s first crypto investment trusts could debut as early as 2026.
