Osaka Exchange Eyes Crypto Domination: Derivatives and ETFs Await Regulatory Green Light

Japan's Osaka Exchange is gearing up to shake the financial world—again. This time, it's betting big on crypto derivatives and ETFs, pending regulatory approval.

Why it matters: If Japan's Financial Services Agency (FSA) gives the nod, Osaka could become Asia's next crypto derivatives hub—leapfrogging rivals still stuck in regulatory purgatory.

The playbook: Leverage Japan's progressive crypto framework to attract institutional capital. Think CME Group, but with sushi and sake breaks.

The cynical take: Because what finance really needs is another way to trade volatility—just ask the 2008 mortgage bond traders.

TLDR

• Osaka Exchange is exploring crypto futures and options products for Japanese markets.

• Japan Exchange Group is considering launching crypto-related ETFs on the Tokyo Stock Exchange.

• Osaka Exchange’s move comes in response to increasing investor demand for crypto derivatives.

• Japan is refining its crypto regulations with new tax and reporting obligations for digital assets.

Japan’s Osaka Exchange is taking a significant step toward the future of digital assets by exploring crypto derivatives trading. The exchange aims to offer new products such as futures and options, responding to a growing investor demand in Japan’s evolving market. Osaka Exchange President Ryusuke Yokoyama confirmed that discussions about these developments are underway, emphasizing the exchange’s focus on researching crypto derivatives to determine their suitability for Japan’s market.

The MOVE is a part of Japan’s broader effort to integrate digital assets more effectively into the country’s financial ecosystem. With Japan’s Financial Services Agency set to engage in discussions regarding crypto regulation, Osaka Exchange is carefully considering global practices. “We will thoroughly consider various overseas specifications and conduct research to determine whether they are suitable for Japan as a preliminary step,” Yokoyama explained.

Potential Launch of Crypto ETFs by Osaka Exchange

Alongside its crypto derivatives efforts, the Osaka Exchange is also exploring the possibility of launching a crypto-related exchange-traded fund (ETF). If approved, the ETF WOULD be listed on the Tokyo Stock Exchange, allowing investors broader access to crypto-related products.

The potential introduction of crypto ETFs aligns with recent regulatory developments in Japan. In 2023, Japan lifted its ban on crypto ETFs, providing an opportunity for financial institutions to create crypto-related investment vehicles.

Japan Exchange Group (JPX), the parent company of Osaka Exchange, sees this as a step to expand its asset offerings and meet market demands. “The medium-term management plan of JPX includes expanding into new asset classes, including cryptocurrencies,” stated Hiromi Yamamichi, CEO of JPX. This initiative signals JPX’s vision to strengthen its position as a comprehensive financial platform on a global scale.

Japan Evolving Crypto Regulatory Framework

Japan has been at the forefront of cryptocurrency regulation, being one of the first countries to legalize crypto payments in 2017. Over the years, the country has faced challenges like the collapse of Mt. Gox and other high-profile hacks. Despite these setbacks, Japan has continuously worked on refining its regulatory framework for digital assets.

As of 2025, Japan’s government is implementing new regulations for digital currencies. These updates include tighter anti-money laundering (AML) laws, new tax reporting requirements, and reclassification of certain tokens.

The revised framework is aimed at ensuring the growth of the crypto sector while addressing risks and improving investor protection. These developments are expected to foster further institutional interest in Japan’s crypto market, which is already seeing increased investments from major financial entities.

JPX Long-Term Vision for Crypto

Japan Exchange Group is not just focused on crypto futures and options. The company has a broader vision for the integration of digital assets into its operations. CEO Hiromi Yamamichi has emphasized that JPX’s medium-term management plan includes a focus on diversifying its offerings to include cryptocurrencies. This strategy reflects the growing recognition of digital assets as a mainstream investment class.

JPX aims to tap into the global market for digital asset products, capitalizing on the infrastructure and credibility of the Tokyo Stock Exchange. The proposed launch of crypto ETFs is part of this strategy, creating opportunities for both retail and institutional investors to gain exposure to the crypto market through traditional financial channels.

Japan’s shift towards crypto-based financial products is indicative of a larger trend in global finance, where traditional exchanges and financial institutions are increasingly offering products tied to cryptocurrencies. If approved, Osaka Exchange’s initiatives will mark an important milestone in Japan’s adoption of digital assets.