Japan Crypto ETF: SBI CEO Slams 2028 Timeline as ‘Too Late’ in Critical Warning

TOKYO, JAPAN – A leading Japanese financial executive has issued a stark warning about the nation’s pace of cryptocurrency adoption. Asakura Tomoya, the CEO of SBI Global Asset Management, has publicly criticized Japan’s reported 2028 timeline for approving spot cryptocurrency exchange-traded funds (ETFs). He labeled the plan “too late,” arguing it risks leaving Japan behind in the global digital asset race. His comments, made on social media platform X, followed a detailed report from the Nikkei Shimbun newspaper. The report indicated Japan’s Financial Services Agency (FSA) is expected to permit trading of spot crypto ETFs, including for Bitcoin, by 2028. This Japan crypto ETF delay, according to Asakura, represents a critical strategic misstep.

Japan Crypto ETF Delay Sparks Industry Alarm

The CEO’s critique centers on Japan’s perceived sluggish regulatory response. Consequently, the nation may miss a pivotal window in financial innovation. Asakura emphasized that the 2028 target is “too slow to keep up with global trends.” He specifically pointed to rapid developments in the United States, where spot Bitcoin ETFs gained regulatory approval in early 2024. Furthermore, he highlighted competitive movements across Asia. For instance, Hong Kong launched its own spot crypto ETFs in April 2024. This proactive stance by other jurisdictions creates a clear contrast. Japan, once a pioneer in crypto exchange regulation, now faces the prospect of playing catch-up.

The Nikkei Shimbun report provided crucial context. It suggested the FSA’s cautious approach involves parallel tracks. The agency is reportedly considering both spot crypto ETF approvals and significant tax reforms for cryptocurrency holdings. Currently, Japan taxes crypto profits at high rates, which discourages investment. The proposed 2028 timeline would synchronize these two major policy shifts. However, industry leaders like Asakura argue this integrated approach causes unnecessary delay. They advocate for faster, sequential action to maintain market relevance.

Global Regulatory Race Intensifies

The global landscape for cryptocurrency investment products has transformed dramatically. The United States Securities and Exchange Commission (SEC) approved multiple spot Bitcoin ETFs in January 2024. This decision unlocked billions in institutional capital. Following this lead, other nations accelerated their own frameworks. For example, Australia and Canada already host crypto-related ETFs. The table below illustrates the widening gap Japan’s Financial Services Agency must address.

This comparative timeline reveals a significant lag. Asakura’s warning specifically mentions competition from China. Although mainland China maintains a ban on cryptocurrency trading, its digital yuan project and Hong Kong’s pro-innovation stance create a formidable regional hub. South Korea is also advancing its digital asset regulations. Therefore, Japan’s current trajectory could weaken its position as a leading Asian financial center. Capital and talent may flow to more accommodating markets.

Expert Analysis on Economic Impact

Financial analysts underscore the tangible risks of delay. A slower 2028 timeline does not exist in a vacuum. It has direct consequences for investment and innovation. Firstly, domestic investors seek accessible, regulated products. Without local spot ETFs, capital may flow overseas. This outflow reduces liquidity in Japan’s own markets. Secondly, blockchain startups may choose to base operations elsewhere. A supportive regulatory environment is a key factor for tech companies. Thirdly, Japan’s financial institutions lose a first-mover advantage. SBI Holdings, for example, has heavily invested in crypto ventures. Its CEO’s frustration reflects a business reality. The company seeks competitive tools to offer its clients.

Historical context is also vital. Japan was one of the first countries to recognize Bitcoin as a legal payment method in 2017. It established a rigorous licensing system for crypto exchanges. However, this early lead has eroded. The 2018 Coincheck hack prompted stricter regulations, creating a more cautious culture. The FSA’s primary mandate is consumer protection and financial stability. Balancing this with innovation remains a complex challenge. Yet, experts argue that modern safeguards within ETF structures mitigate many traditional crypto risks. These include secure custody solutions and robust market surveillance.

The Path Forward and Industry Pressure

Asakura’s public statement is part of a broader lobbying effort. The financial industry is urging policymakers to accelerate the process. Key arguments for a faster approval include:

• Investor Protection: Regulated ETFs provide a safer alternative to unregulated offshore exchanges.
• Market Development: These products would deepen and mature Japan’s digital asset ecosystem.
• Tax Revenue: Earlier adoption could generate significant tax income from profitable investment vehicles.
• Global Competitiveness: Speed is essential to attract international financial business.

The call to “approve spot crypto ETF trading as soon as possible” is clear. It reflects a consensus among many market participants. The FSA now faces increased pressure to revisit its schedule. Some observers suggest a phased approach. The agency could approve ETFs under existing investment trust laws before finalizing comprehensive tax reforms. This would decouple the two issues and provide a much-needed market instrument. The coming months will likely see intensified discussions between regulators, politicians, and financial leaders.

Conclusion

The critique from SBI’s CEO highlights a critical juncture for Japan’s financial future. The proposed Japan crypto ETF timeline of 2028 is viewed by industry leaders as dangerously slow. This pace risks ceding ground to global and regional competitors in the rapidly evolving digital asset landscape. While regulatory caution is prudent, excessive delay carries its own economic costs. The debate now centers on finding a balance that protects investors without stifling innovation. Japan’s decision will significantly influence its role in the next generation of global finance.

FAQs

Q1: What did the SBI CEO say about Japan’s crypto ETF plans?
Asakura Tomoya, CEO of SBI Global Asset Management, stated that Japan’s reported 2028 timeline for approving spot cryptocurrency ETFs is “too late.” He warned the slow response risks leaving Japan behind global competitors like the U.S. and other Asian markets.

Q2: What is a spot crypto ETF?
A spot crypto ETF is an exchange-traded fund that holds the actual cryptocurrency, like Bitcoin, in custody. It allows investors to gain exposure to the price movements of the asset without needing to buy and store the crypto themselves, offering a regulated and convenient investment vehicle.

Q3: Why is Japan’s 2028 timeline considered slow?
The timeline is considered slow because other major financial markets, including the United States and Hong Kong, approved spot crypto ETFs in early 2024. A four-year delay could result in lost investment, innovation, and competitive standing in the global digital asset industry.

Q4: What is the Financial Services Agency (FSA) reportedly planning alongside ETF approval?
According to reports, Japan’s FSA is planning to implement new tax reforms for cryptocurrency holdings concurrently with ETF approval by 2028. The current tax regime is seen as a barrier to adoption, and the agency aims to address both regulatory and taxation issues together.

Q5: How could this delay affect Japanese investors and businesses?
The delay could push Japanese investors to use foreign, potentially less-regulated platforms to access crypto ETFs, increasing risk. For businesses, it could mean a loss of talent and capital to more crypto-friendly jurisdictions, hindering the growth of Japan’s domestic fintech and blockchain sectors.