Japan's traditional securities giants are preparing for full-scale entry into the digital asset market, driven by anticipated regulatory reforms from the Financial Services Agency (FSA). The catalyst is expected reform that would reclassify Bitcoin as an investment product rather than a payment instrument, marking a structural change in how digital assets are positioned within Japan's financial system.
Japan's "Big Three" brokerage firms, with a combined market capitalization of approximately $48 billion, are positioning for entry into the cryptocurrency exchange business. Nomura Holdings, the country's largest investment bank with roughly $673 billion in client assets, plans to launch a cryptocurrency exchange in Japan by the end of 2026 through its Swiss-based crypto subsidiary, Laser Digital.
Daiwa Securities Group, Japan's second-largest brokerage, is actively considering entry into the crypto exchange sector, with internal discussions signaling strategic preparation. SMBC Nikko Securities, the third-largest firm, is also evaluating a crypto exchange launch and has already established a dedicated DeFi department to build internal capabilities for blockchain-based financial products.
The regulatory framework is undergoing significant transformation. Japan's Finance Minister has designated 2026 as a "Digital Year" for financial reform, signaling formal integration of digital assets into mainstream capital markets. The FSA plans to submit legislation in 2026 that would transition crypto oversight to the Financial Instruments and Exchange Act, reclassifying Bitcoin and other high-market-cap tokens as investment products.
In parallel, the FSA is targeting the launch of spot cryptocurrency ETFs by 2028 through amendments to the Investment Trust Act. Major firms including Nomura Asset Management and SBI are already developing products in anticipation of this regulatory shift.
Tax reform represents another critical component of Japan's crypto strategy. Authorities are considering reducing the maximum tax rate on crypto gains from 55% to a flat 20%, aligning digital assets with the taxation framework applied to traditional equities. This move would materially improve the risk-reward profile for both retail and corporate investors.
Analysts estimate that Japan's crypto ETF market could eventually reach approximately ¥1 trillion (around $6.7 billion) in assets under management. While smaller than the U.S. Bitcoin spot ETF market's current $122 billion in assets, the structural importance lies in institutional participation. The entry of major securities firms is primarily aimed at corporate clients, focusing on treasury management, custody solutions, and regulated investment vehicles.
