The approval of spot cryptocurrency ETFs in the United States, Hong Kong, and other markets on October 23 highlights the conservative and contrasting approach taken by Japanese regulators. At the policy level, Japan remains hesitant to liberalize restrictions, remove tax and regulatory barriers, and promote the widespread adoption of cryptocurrencies. Although some Japanese companies are preparing to launch digital asset products, tax and regulatory restrictions remain the main obstacles. In Japan, general cryptocurrency ROI is treated as miscellaneous income, with a top tax rate of 55%. However, ETFs are treated as capital gains when traded on the securities market, so the tax rate is lower at around 20%, providing investors with a more attractive option to diversify their portfolios through digital assets. Spot cryptocurrency ETFs will also enjoy tax benefits such as loss carry-over. But according to Keisuke Kimura, vice president of the Japan Crypto Asset Business Association and former financial advisor to SMBC Nikko Securities, many changes are needed to get regulators to act and introduce these potential tax benefits.