Nomura Report: Japanese Institutions Increasingly Willing to Invest in Cryptocurrencies

A survey released by Nomura Holdings, Japan's largest brokerage, and its digital assets division, Laser Digital, shows that the willingness of Japanese institutional investors to invest in crypto assets is gradually increasing. More than half of the surveyed investment managers are planning to invest in crypto assets in the next three years. Source

Nomura Report: Institutional Interest in Investing in Cryptocurrencies on the Rise

A survey conducted in April targeting 547 investment managers in Japan, including banks, trusts, life insurance companies, and hedge funds among various investment-related firms, found that 54% of respondents are interested in investing in cryptocurrencies in the next three years to stabilize their portfolios, while diversifying and hedging against inflation to reduce risks. Approximately 25% of respondents indicated a positive impression of cryptocurrencies, especially Bitcoin and Ethereum, with 62% viewing crypto assets as a diversification opportunity, planning to allocate 2-5% of their total assets to cryptocurrencies.

When it comes to choosing cryptocurrency-related investment products, 53% opt for ETFs, while 31% prefer direct investments in crypto assets. However, Japan currently prohibits Japanese securities firms from issuing related ETFs, even indirect investments!

Stubborn FSA? Japan's Financial Services Agency also prohibits Japanese citizens from trading Bitcoin ETFs and prohibits indirect investments.

The report also points out that despite the growing investment interest among institutional investors, there are still some obstacles. For those who do not consider investing, these barriers include issues related to cryptocurrencies such as fundamentals, counterparty risks, and high volatility, as well as regulatory requirements and internal environments.

Japan Continues to Promote Crypto Innovation and Regulation

Compared to the past, Japan has been relatively conservative in its crypto policies, but seems to have further relaxed crypto regulations after the global attention sparked by FTX's bankruptcy. As part of Prime Minister Fumio Kishida's "new capitalism" economic policy, Japan is promoting the development of the Web3 industry.

In September last year, the Japanese government announced adjustments to the regulatory framework, allowing startups to raise funds by issuing digital assets to investors, enabling startups to offer cryptocurrencies instead of stocks or other assets when raising funds. The new financing mechanism, called the "Investment Limited Partnership Fund," will apply to startups issuing securities based on multiple criteria.

Web3 Startup Coin Financing Shines? Japan's Cabinet Approves New Law, Pending Parliamentary Review for Effectiveness

In addition, the government has approved a tax system revision where companies are exempt from paying taxes on unrealized gains from virtual currencies under two conditions.

Japan's National Tax Agency Eases Crypto Tax, Companies Exempt from Tax on "Unrealized Gains"

Japanese Version of MicroStrategy, Metaplanet, Making Moves

Dubbed the Japanese version of MicroStrategy, Metaplanet is a diversified company that originated from Hotel Royal Oak, listed on the Tokyo Stock Exchange (TSE) in 2004.

In April, Metaplanet announced that its board had approved the purchase of Bitcoin, investing up to 1 billion yen as a significant part of its financial assets. Metaplanet also recently issued corporate bonds to purchase Bitcoin, following a strategy similar to MicroStrategy. It is evident that Japanese companies are also attempting to incorporate cryptocurrencies like Bitcoin into their investment management.

1 Billion Yen to Buy BTC, Japanese Stock Metaplanet Surges Nearly 90%! Sora Ventures Acquires to Create "Asian MicroStrategy"