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Japanese financial institutions are proposing virtual currency ETFs focused on Bitcoin and Ether. The proposals include a reassessment of tax policy for crypto income.
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The Japanese Business Federation suggested that discussions about establishing a virtual currency ETF should focus on major tokens such as Bitcoin and Ether.
The initiative comes as Japan considers whether to align its regulations with international moves to allow these financial products.
This group includes prominent institutions such as Mitsubishi UFJ Trust and Banking, securities companies such as Nomura Securities and Daiwa Securities, and crypto exchanges such as bitFlyer and Bitbank, Japan’s largest crypto exchange.
They emphasized that Bitcoin and Ether’s large market capitalization and stable track record make these digital assets suitable for investors seeking medium- to long-term wealth creation.
Their proposals, published on Friday, also call for a review of the tax framework for crypto assets, and in particular advocate unbundling taxes on income earned from digital currencies.
The debut of crypto ETFs in the United States earlier this year marked a significant moment for the digital asset industry, which has long struggled with regulatory hurdles around launching funds backed by Bitcoin and Ether.
The adoption of Bitcoin and digital assets in Japan is steadily gaining momentum. Tokyo-based Metaplanet has adopted Bitcoin as a strategic reserve asset to hedge Japan’s debt burden and associated yen fluctuations.
The company currently holds 855 Bitcoins worth approximately $56 million. Additionally, Metaplanet announced that it will apply MicroStrategy’s BTC Yield Strategy to assess how a Bitcoin acquisition will impact shareholder value.
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