Japan continues to struggle with crypto ETFs, elections crucial for future policy

In Japan, the launch of a new cryptocurrency Spot Exchange Traded Fund (ETF) continues to be postponed. The Asian country has strict laws and regulations for cryptos, including an extremely high profit tax on digital currencies, which can be as high as 55%. This discourages investors from getting into cryptocurrencies.

Still, some experts see hope for the introduction of ETFs in Japan, partly due to political developments surrounding the upcoming elections.

Many other countries are already far ahead of Japan in crypto legislation and adoption. In the United States, the success of the Bitcoin (BTC) ETF is undeniable. These funds have amassed tens of billions of dollars in capital, contributing to the explosive Bitcoin price rally earlier this year. The largest cryptocurrency reached an all-time high of $73,700. Further growth of Bitcoin ETFs will likely play a crucial role in the coin reaching a new all-time high.

Elections crucial for crypto ETF in Japan

Global investment firm Franklin Templeton has entered into a partnership with Japanese financial services firm SBI Holdings to potentially launch crypto ETFs in Japan. This partnership offers investors hope that a cryptocurrency fund could soon become a reality in the country.

The focus is now on the upcoming elections, in which Yuichiro Tamaki, the leader of the DPP party, is actively calling for a reform of the tax structure for cryptocurrencies in Japan.

Crypto Adoption in Japan: Bullish for Prices

Tamaki aims to reduce taxes on cryptos to 20%, comparable to traditional investments. The elections, which take place on October 27, could have a major impact on crypto adoption in Japan. Changes in legislation and the introduction of a crypto ETF could attract millions of dollars in capital, which could have a bullish effect on crypto prices.