Japan is moving closer to launching cryptocurrency exchange-traded funds (ETFs) following a significant shift in regulatory policy, which now places digital assets under the same legal framework as traditional financial instruments.
Crypto classified as financial instruments
On July 15, 2026, Japan’s National Diet passed legislation to reclassify cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act (FIEA). This transition means that digital assets are now subject to the same laws and oversight as stocks, a move considered foundational for further integration into established financial markets.
Industry observers highlighted that the adjustment not only clarifies the legal standing of cryptocurrencies but also establishes mechanisms for separate taxation of these assets. Market sources expect this classification to set the groundwork for launching crypto ETFs in Japan, with the Tokyo Stock Exchange potentially listing such products as early as 2027.
Path to listing and regulatory hurdles
Although the FIEA reclassification represents a milestone, final approval for crypto ETFs will require rulemaking by Japan’s Financial Services Agency (FSA). Analysts anticipate that the earliest exchange listings would be in 2027, with Bitcoin likely to lead those initial offerings.
Shiba Inu (SHIB) has also emerged as a contender in Japan’s evolving crypto ETF landscape. The coin earned a spot on the Japan Virtual and Crypto Assets Exchange Association’s (JVCEA) Green List in November 2025, joining Bitcoin and Ethereum. This designation highlights SHIB’s regulatory status and could be instrumental for eligibility in future ETF products.
In June 2026, Mercari, Japan’s largest marketplace with 23 million users, began supporting SHIB, boosting the coin’s exposure within the country’s retail investor base.
Shiba Inu’s momentum and market access
Mazrael, a longstanding Shiba Inu community participant, detailed the factors contributing to SHIB’s strengthened foothold in Japan. He pointed out that the Green List required listing on eight or more licensed Japanese exchanges, whereas the standard threshold is three, placing SHIB on the same tier as Bitcoin and Ethereum. He also emphasized the tax changes: capital gains on SHIB are now taxed at a flat rate of 20%, down from previous rates of up to 55%.
The Green List, the requirement for eight licensed exchanges when the bar is three, and recognition alongside BTC and ETH marks a turning point for SHIB. The drop from up to 55% tax to a flat 20%, plus Mercari listing SHIB for 23 million users, positions it favorably, with 4 million crypto accounts now open—85% belonging to new traders.
Mazrael also underscored that meeting eligibility criteria remains a crucial step before ETF consideration, describing it as the most significant barrier for most crypto assets.
Eligibility first, ETF later, remains the critical hurdle for digital assets seeking broader financial integration in Japan.
Global advances and tokenized asset trends
SHIB has not yet secured a spot ETF in the United States. However, the asset’s progress in global markets continues, with European exchange-traded products and regulated exposure in Japan already established, as well as newly introduced futures access in Canada.
As digital assets align more closely with traditional finance structures, a significant transformation is underway. In recent months, Wall Street has accelerated its move into Web3. Investors are increasingly opting for platforms like 1stepSwap, which enables them to hold shares of major US firms, gold, and silver within their crypto wallets. Through the tokenization of Real-World Assets and rapid price discovery, these solutions are eliminating traditional financial intermediaries from the investment process.
