Japan Reclassifies Cryptos as Financial Instruments, Paving Way for Crypto ETFs
Japan's National Diet passed legislation on July 15, 2026, to reclassify cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act (FIEA). This shift in regulatory policy establishes digital assets as subject to the same laws and oversight as stocks. The move is seen as foundational for further integration into established financial markets.
The classification of cryptocurrencies as financial instruments sets the groundwork for launching crypto exchange-traded funds (ETFs) in Japan. Market sources expect final approval from the Financial Services Agency (FSA) to lead to initial ETF listings on the Tokyo Stock Exchange as early as 2027, with Bitcoin likely to be among the first offerings.
Shiba Inu (SHIB), a contender for Japan's evolving crypto ETF landscape, has earned a spot on the Japan Virtual and Crypto Assets Exchange Association's (JVCEA) Green List in November 2025. The coin's inclusion highlights SHIB's regulatory status and could be instrumental for eligibility in future ETF products.
Mercari, Japan's largest marketplace with 23 million users, began supporting SHIB in June 2026, boosting the coin's exposure within the country's retail investor base. Shiba Inu's strengthened foothold in Japan is attributed to its meeting of eligibility criteria for the Green List and tax changes that have reduced capital gains on SHIB from up to 55% to a flat rate of 20%.