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Japan’s financial regulator is reviewing crypto laws and may reclassify digital assets as securities. This move could impact investors and open doors for ETFs.

Japan’s FSA Reviews Crypto Regulations

Japan’s Financial Services Agency (FSA) is discussing possible changes to cryptocurrency regulations. According to Yahoo Japan, the agency is considering classifying digital assets as securities under financial law.

🚨JUST IN: JAPAN'S FSA IS PLANNING TO CLASSIFY CRYPTO AS A FINANCIAL PRODUCT, AND IS CONSIDERING APPROVING A SPOT BITCOIN ETF 🚀🚀 pic.twitter.com/awDdbbeqTU
— CryptoSavingExpert ® (@CryptoSavingExp) February 10, 2025

The closed-door discussions involve experts analyzing whether existing laws should apply or if new regulations are needed. The FSA plans to announce its policy direction by June 2025, with potential legal amendments coming as early as 2026.

What This Means for Investors

If crypto assets are classified as securities, it could introduce stricter rules for retail investors. However, this change might also allow spot crypto ETFs to launch in Japan.

The FSA is still deciding whether these new regulations would apply to all cryptocurrencies or only to major assets like Bitcoin and Ethereum.

Japan’s Push for Crypto ETFs

A domestic study group recently recommended prioritizing Bitcoin and Ethereum ETFs while refining Japan’s crypto regulations. The proposal also included:

✔ Advancing regulatory frameworks for crypto investments.
✔ Applying separate tax rules for crypto ETFs and spot transactions.

Japan’s evolving stance on crypto-friendly policies could attract major venture capital firms looking to expand in the digital asset space.

SoftBank’s Growing Interest in Crypto

📌 SoftBank, a major Japanese investment firm, has been making moves in the crypto sector. It recently backed Cipher Mining, a U.S.-based crypto mining data center.

As part of the deal, SoftBank secured an option to acquire a 300MW data center site in Texas, signaling its long-term interest in blockchain and digital assets.

Japan’s Crypto Regulation: What’s Next?

The potential approval of crypto ETFs in Japan comes as SoftBank reports steady financial growth. The company’s earnings for Q1-Q3 2024 show a 7.4% increase in net income, reaching 436.6 billion yen ($2.9 billion).

With financial institutions showing increased interest, Japan’s crypto market could see major regulatory changes in the coming years.

Mike Dolan provides a glimpse into today’s landscape in U.S. and global markets, where the soaring Japanese stocks stand out amid a relatively calm global market scene. Wall Street braces for a significant inflation update, while bitcoin experiences volatility due to statements from a reportedly hacked SEC account.

While most of Asia’s stock markets face uncertainty, Japan’s Nikkei 225 hits 34-year highs, defying the regional trend. Japanese stocks, historically inexpensive, have seen substantial gains over the past year, driven by the Bank of Japan’s divergence from the G7’s interest rate tightening and the yen’s depreciation.

Expectations of the BOJ ending its negative rate policy were tempered by recent soft inflation and wage figures in Japan. Real wages of Japanese workers continued to decline for the 20th consecutive month in November, signaling economic challenges.

The recent turmoil in the cryptocurrency market was sparked by a fake post from the hacked SEC ‘X’ account, falsely claiming approval of cryptocurrency exchange-traded funds (ETFs). Bitcoin initially surged but then slid back after the SEC clarified that no such approval had been granted.

While market focus remains on the upcoming U.S. consumer price report and the start of the earnings season, other areas exhibit relative stability. Treasury auctions proceeded smoothly, impacting yields and the dollar’s performance against major currencies. S&P500 futures show marginal gains after a slight retreat on Tuesday.

Boeing continues to grapple with the aftermath of recent aviation incidents, with CEO Dave Calhoun acknowledging errors and pledging to prevent such accidents in the future. Meanwhile, Taiwan’s TSMC reports steady fourth-quarter revenue amid election concerns gripping the island.