As Japan moves to overhaul its system to bring cryptocurrencies into regulated financial products, the possibility has been raised that Shiba Inu (SHIB) could benefit in the local market. Analysts say the shift in the financial products regulatory framework and discussions on introducing crypto exchange-traded funds (ETFs) are combining to create a favorable environment for Shiba Inu, which has already secured a foothold for distribution within Japan’s regulated system.

On July 11, blockchain outlet U.Today reported that Japan has recently passed a bill accelerating reforms by moving the cryptocurrency regulatory framework from the Payment Services Act to the Financial Instruments and Exchange Act.

The new system is expected to take effect from next year. It includes managing cryptocurrencies under a regulatory framework similar to that for existing financial products. As a result, tax burdens are expected to ease while investor protection and trading regulations are expected to be strengthened. At the same time, it is expected to lay the institutional groundwork for introducing new financial products such as crypto ETFs.

Mazrael (마즈레일), a member of the Shiba Inu community, said Japan is reaching an important turning point as it moves toward becoming one of the world’s most crypto-friendly countries. He explained that the Japanese government is aligning its policies toward recognizing cryptocurrencies as regulated financial products and is also moving proactively to establish a system to legalize crypto ETFs.

Institutionalizing ETFs is also seen as a key variable for market expansion. Japan’s finance minister, Satsuki Katayama, has said the government is pushing to build a legal basis to allow crypto ETFs. This is interpreted as a signal of Japan’s policy direction to bring cryptocurrencies more deeply into the existing financial market.

Shiba Inu is drawing attention because it has already entered Japan’s regulated market. More than 14,000,000 cryptocurrency accounts have been opened in Japan, and the market continues to grow steadily, led by individual investors. Shiba Inu was classified as an asset that is relatively easier to list on local exchanges after it was included in the Japan Virtual and Crypto Assets Exchange Association (JVCEA) "green list" in November last year.

The JVCEA green list is known as a system that simplifies exchange listing procedures for cryptocurrencies that have undergone a certain level of screening. As a result, if a new regulatory framework and an ETF system are introduced, there is talk that Shiba Inu, which has already secured a regulated distribution base, could be among the first to benefit.

Distribution channels are also expanding. Shiba Inu is traded on Mercoin, a unit of Mercari, and Rakuten Wallet, the cryptocurrency exchange of Japan’s Rakuten Group, also listed Shiba Inu in April this year. In particular, Shiba Inu has also been linked to the Rakuten Pay ecosystem, a simple payment service with about 44,000,000 users, creating a base to reach ordinary consumers as well as existing crypto investors.

Still, whether it actually benefits depends on whether Japan’s reforms are implemented as planned. The market believes that if implementation of the Financial Instruments and Exchange Act amendment and detailed rules on crypto ETFs are specified, Shiba Inu, which has already secured listing and distribution foundations in Japan, could emerge as one of the leading candidates to benefit.