Major Asian Asset Managers Reveal Their Plans for the Agenda

Despite a global trend towards approving spot crypto exchange-traded funds (ETFs), Japan’s regulators are maintaining a cautious stance, according to Sumitomo Mitsui Trust Asset Management. Oki Shiozawa, investment director at Sumitomo Mitsui Trust Asset Management, stated in an interview with the Financial Times that Japanese authorities are not currently ready to approve crypto ETFs. Japan, known for its crypto-friendly environment, is facing obstacles such as high tax rates and strict regulations that hinder widespread adoption. Profits from crypto investments are subject to a tax rate of up to 55% in Japan, compared to the 20% tax rate for capital gains from ETFs. The country’s limitations are attributed to regulatory constraints and the public’s perception of crypto, which is still influenced by past scandals such as Mt. Gox and DMM. However, some firms, including Franklin Templeton and SBI Holdings, are preparing for potential regulatory changes by developing new products, including crypto ETFs. The US approved its first spot Bitcoin ETFs in January, followed by Ethereum ETFs in July, while other markets in the Asia-Pacific region, like Hong Kong and Australia, have also made progress in this area. There are calls for Japan to adopt a similar approach.

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