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Japan's ruling Liberal Democratic Party has proposed the establishment of a legal structure for cryptocurrency ETF trading to the finance minister.
By Jamie Crawley|Edited by Sheldon Reback Jun 1, 2026, 1:38 p.m. 1 min readMake preferred on (DavidRockDesign/Pixabay)Key Points:
- The ruling Liberal Democratic Party of Japan advocates for a legal framework to facilitate cryptocurrency ETF trading.
- A related panel also recommends promoting the adoption of yen-pegged stablecoins.
- This move would align Japan with major markets like the U.S. and Hong Kong, which offer ETFs to provide crypto market exposure without the need to manage the underlying assets.
The ruling Liberal Democratic Party (LDP) of Japan has stated the need for a legal framework aimed at cryptocurrency exchange-traded funds (ETFs), as reported by Reuters on Monday.
A panel focused on advancing blockchain technology presented its recommendations to Finance Minister Satsuki Katayama, which included advocating for the increased use of yen-based stablecoins.
The proposal highlighted that "Crypto-ETFs would offer investors straightforward investment options," according to the Reuters report.
In April, Japan's cabinet approved a draft amendment to classify cryptocurrencies as financial products, a shift from their previous classification as payment tools.
This initiative would position Japan alongside significant markets like the U.S. and Hong Kong in providing ETFs, allowing investors to engage with the crypto market without directly purchasing and holding the assets.
Efforts are already in progress to create and promote yen-pegged stablecoins, which are digital currencies tied to the value of traditional financial assets, such as fiat currencies.
The $315 billion stablecoin market is primarily dominated by dollar-pegged tokens, raising concerns among policymakers globally about the implications of dollar dominance on their banking and payment systems.
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