Traditional securities firms in Japan are accelerating their preparations for a comprehensive entry into the country’s digital asset market. Behind this move, there are new regulatory efforts planned by the Financial Services Agency, which include removing Bitcoin from its status as a payment instrument and reclassifying it as an investment product.
Move to Return to Crypto from the Country’s Three Largest Brokerage Houses
Japan’s three largest brokerage firms, with a total market value of approximately $48 billion, are continuing their official preparations to establish a cryptocurrency exchange. Nomura, one of the leading investment banks in the country, aims to open a cryptocurrency exchange in Japan by the end of 2026 through its Switzerland-based crypto subsidiary. Nomura currently has significant institutional capacity in terms of client assets, indicating great potential once the exchange in question is launched.
Daiwa Securities, Japan’s second largest brokerage firm, is formulating its corporate plans on whether to enter the crypto exchange industry. Although there is no official launch date yet, a serious planning process is underway within the company for this area.
SMBC Nikko Securities, which ranks third, is evaluating the possibility of establishing a cryptocurrency exchange. It is stated that a special DeFi department has been established within the company to focus on blockchain-based financial products. When these developments are evaluated together, it stands out that Japan’s traditional brokerage structures focus on regular digital asset integration rather than speculative initiatives.
2026 has been declared the “Digital Year” and New Regulations are on the Agenda
Japan’s Finance Minister described 2026 as the “Digital Year” in terms of financial reforms and presented a comprehensive vision that envisions digital assets taking part in mainstream markets. The Financial Services Agency is working on a new legal framework that will be subject to the Existing Financial Instruments and Exchange Act in 2026. With this change, it is expected that Bitcoin and other crypto assets with high market value will be seen as investment products and there will be a significant change in institutional participation.
The agency also aims to launch spot cryptocurrency ETFs in 2028 with the amendment to the Investment Funds Law. It is already known that major financial institutions such as Nomura Asset Management and SBI have started product development studies in preparation for this new legislation. A new approach to taxing crypto earnings is also on the agenda; It is planned that the highest tax rate will be reduced from 55 percent to 20 percent, and digital assets will have similar tax conditions as stocks. This change is designed to make crypto markets more attractive to both individual and institutional investors.
The Institutional Market and the Potential of ETFs
Experts suggest that the crypto ETF market in Japan could reach a size of approximately 1 trillion yen, or $6.7 billion, in the medium term. Although the Japanese market remains relatively small compared to the existing portfolios of Bitcoin spot ETFs in the US, it is stated that the real importance lies in the entry of institutional investors into the market.
The entry of major brokerage firms into the crypto sector is primarily focused on corporate and institutional treasury management, custody services and the development of regulated investment products. This approach seems likely to allow the crypto market in Japan to grow predominantly within regulated infrastructures and integrated into mainstream capital markets.
If the proposed new regulations become law, Japan will transition from a restrictive framework on digital assets to a new model based on regular investment. As a result, a new era is envisaged in the country in which the cryptocurrency market moves away from its speculative character and integrates with the traditional capital market infrastructure.
