A significant development for Japan’s cryptocurrency market is underway. Leading financial companies SBI Securities and Rakuten Securities have revealed plans to introduce cryptocurrency investment funds. This initiative will become official once the Financial Services Agency of Japan finalizes its new regulatory framework for crypto investment products.
Major brokerages move into crypto
SBI Securities is best known as the online brokerage and investment banking subsidiary of the SBI Group, one of the country’s largest financial institutions. Rakuten Securities, meanwhile, operates as the brokerage arm of Rakuten Group, a major player in both technology and financial services. Both companies are developing solutions to allow customers to invest in cryptocurrencies more easily via their existing accounts.
These new offerings, modeled after investment funds, aim to simplify access to crypto markets for investors. There are plans to integrate these products into traditional investment platforms already used by clients. This will enable individual investors with online accounts to directly allocate funds to cryptocurrencies through familiar channels.
Regulation and industry outlook in Japan
According to a Nikkei survey, the interest in crypto investment funds extends beyond SBI and Rakuten. Out of 18 surveyed companies, 11—including prominent names like Nomura Securities, Daiwa Securities, and Mizuho Securities—are considering entering the crypto investment fund market in the near future. Many industry players appear to be awaiting the completion of the updated regulatory process.
Exchange-traded funds (ETFs) are expected to be a part of these new investment products’ structures. These funds are planned to be developed by subsidiaries affiliated with the major groups. In January 2024, the United States approved spot crypto ETFs, and bitcoin-based products quickly surpassed $100 billion in total net asset value. Market observers suggest a similar demand could emerge in Japan as regulations change.
New era for legal regulations
In early April, the Japanese government approved draft legislation reclassifying cryptocurrencies from payment instruments to financial products. This law, if passed, will bring crypto assets under the scope of the Financial Instruments and Exchange Act, potentially taking effect in the fiscal year 2027 if it passes parliament.
Sources familiar with the matter believe the new regulations will foster a more institutionalized and supervised environment for cryptocurrencies. Investors may benefit from reduced risks and improved market transparency. Additionally, this updated regulatory framework could pave the way for new types of investment instruments and greater access to professional portfolio management.
With the finalization of regulations by Japan’s Financial Services Agency and the entry of traditional investment giants into crypto funds, the market is expected to see increased diversity and activity.
All these recent changes signal that Japan is preparing to play a more prominent role in the global crypto market. Completing the regulatory process is likely to open the door to a range of new products, simplifying access to digital assets for both individual and institutional investors.
