Japan’s Top Brokerages Prepare Crypto Exchange Push as Bitcoin Reclassification Nears

Japan’s traditional securities giants are preparing for full-scale entry into the digital asset market.

The catalyst is expected reform from the Financial Services Agency (FSA), including the reclassification of Bitcoin as an investment product rather than a payment instrument.

This transition would mark a structural change in how digital assets are positioned inside Japan’s financial system. Instead of remaining on the periphery, Bitcoin and other large-cap tokens would move under the Financial Instruments and Exchange Act, placing them alongside traditional investment products.

Japan’s “Big Three” Move Toward Crypto Exchanges

Japan’s three largest securities 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, plans to launch a cryptocurrency exchange in Japan by the end of 2026. The initiative will be executed through its Swiss-based crypto subsidiary, Laser Digital. Nomura currently manages roughly $673 billion in client assets, giving it substantial institutional reach if the exchange goes live.

Daiwa Securities Group, the second-largest brokerage in Japan, is actively considering entry into the crypto exchange sector. While no formal launch date has been announced, internal discussions signal strategic preparation rather than exploratory interest.

SMBC Nikko Securities, the third-largest firm, is also evaluating the launch of a crypto exchange business. The company has already established a dedicated DeFi department to build internal capabilities and prepare for blockchain-based financial products.

Collectively, these moves suggest that Japan’s traditional brokerage infrastructure is preparing for regulated digital asset integration rather than speculative expansion.

2026 Designated as Japan’s “Digital Year”

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. This would reclassify Bitcoin and other high-market-cap tokens as investment products, a change that could materially alter institutional participation dynamics.

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 is another critical component. 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. Such a move would materially improve the risk-reward profile for both retail and corporate investors.

Institutional Capacity and ETF Outlook

Analysts estimate that Japan’s crypto ETF market could eventually reach approximately ¥1 trillion, or around $6.7 billion, in assets under management. For context, U.S. Bitcoin spot ETFs currently hold approximately $122 billion in assets.

While Japan’s projected market size is smaller, 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.

If the proposed reforms pass, Japan would shift from a restrictive crypto environment to a regulated investment-driven framework. That transition would represent one of the most significant structural realignments in the country’s financial sector in recent years.

Rather than a speculative wave, the developments point toward a formal integration of digital assets into Japan’s traditional capital markets infrastructure.

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