Japan is set to lift the ban on crypto ETFs backed by Bitcoin & Ether as the nation’s ruling party recently proposed a major shift in cryptocurrency policies. Startale Group CEO Sota Watanabe revealed that the nation eyes regulating crypto within a new framework under the Financial Instruments and Exchange Act.
Japan Proposes Regulatory Shift To Jack Up Crypto ETFs
In an X post on March 6, the Soneium contributor firm’s (Startale) CEO revealed that Japan’s ruling party (Liberal Democratic Party) proposed a major shift in cryptocurrency regulations recently. The proposal is to regulate digital assets within a new framework under the Financial Instruments and Exchange Act, offering more clarity.
If approved, this proposal will pave the way for crypto ETFs launch in the Asian country shortly ahead. In turn, the broader market could substantially leverage enhanced regional investor participation, thereby bolstering prices.
With countries such as the U.S. forging ahead with pro-crypto regulations, Japan is initiating efforts to not lag in the race. So far, the U.S. marks a monumental stride with its looming crypto summit and a digital asset reserve in the pipeline.
Nevertheless, other developments suggesting a more pro-crypto approach by the Asian country amid a global shift have followed.
What’s More?
According to Startale CEO, cryptocurrencies are likely to be regulated ‘not as a security’ under the new proposal. Besides, it is to be regulated as a new asset with a new framework within the Financial Instruments and Exchange Act.
The Japanese government is already in talks with industry leaders to forge ahead with the same. Also, Sota Watanabe revealed that tax deductions from 55% to 20% seem up for grabs with the new regulatory proposal.
Altogether, the paradigm shift in regulatory policies underscores the nation’s growing support for digital assets, and thus crypto ETFs. Not long ago, CoinGape reported that Japan rejected Bitcoin national reserve plans, citing the broader sector’s volatility.
Stablecoin Advancement Adds To Pro-Crypto Wave
Also, the crypto subsidiary of Japan’s SBI financial services revealed that it will soon support Circle’s USDC stablecoin transactions. Starting March 12, SBI VC Trade is expected to offer users the first USDC transaction. This development, contrary to the country’s previous ban on stablecoin backed by foreign countries, also signaled growing support for crypto.
In response, market participants weigh substantial optimism over crypto ETFs launch in the country ahead. The nation’s financial regulator, Financial Services Agency (FSA), could uplift the ban on Bitcoin ETF & Ether ETF sooner than expected. Meanwhile, the proposal comes amid a broader crypto market recovery trend, sparking investor discussions globally.
According to Wifi Dabba CEO and founder Karam Lakshman, India’s rapid digital growth has outpaced its broadband infrastructure, leaving hundreds of millions without stable access. He believes decentralized networks may offer a way to bridge that gap, using global capital, local deployment partners, and tokenized incentives to scale internet access cost-efficiently.
Wifi Dabba is putting that belief into practice. After seven years of operating in India’s broadband space, the Bangalore-based provider is now repositioning itself as a decentralized physical infrastructure network, or DePIN project.
In a recent interview with BeInCrypto, Lakshman discussed the company’s latest initiative to partner with BONK, one of Solana’s most active communities. Through this collaboration, Wifi Dabba aims to deploy 10,000 decentralized Wi-Fi hotspots across underserved regions in India.
A Network Too Big to Scale the Old Way
India is the world’s second-largest telecom market, with more than 800 million 4G and 5G subscribers. Yet when it comes to broadband, the country lags behind. Lakshman points out that while the United States has over 120 million broadband connections and China has more than 600 million, India counts only about 40 million.
“India developed rather quickly in the last 20 years, and we skipped the broadband step,” he said. “So there’s this mad race that’s happening now in India to build broadband networks.”
Wifi Dabba’s early work included powering segments of Google public Wi-Fi programs and helping the Indian government shape national telecom policy. But as the company expanded its own branded network, Lakshman said they discovered just how limited broadband access really was.
“We didn’t realize that the stat was so bad. Only five percent of India has broadband internet. We really thought most people did. So to us, that was the biggest eye-opener,” Lakshman told BeInCrypto.
In response, Dabba restructured its model around a decentralized deployment system powered by tokenized incentives. The premise is straightforward. Anyone in the world can purchase a Dabba Lite hotspot, and instead of receiving the device themselves, the company installs it in a home or office in India where there’s real demand.
“By decoupling the person that owns the hotspot from where the hotspot is going to be deployed, we do two incredibly powerful things. The first is it allows us to match supply and demand more efficiently because we’re deploying only in places where people need it and are willing to pay for it. The second is that the person buying the hotspot, like someone sitting in the US, ends up subsidizing the cost of that internet connection for someone in India,” he explained.
What Crypto Looks Like When the End User Doesn’t Know It’s There
For the person receiving internet access, Dabba’s system doesn’t feel like crypto at all. It’s a standard broadband connection, paid in fiat, installed in their home or business. What stands out to users is the price. Dabba’s service can be three to ten times cheaper than other options.
Some grow curious after noticing the discount. Dabba shares a small portion of its native token with users, which they can use for future discounts or trade on a decentralized exchange. For many, it becomes their first interaction with crypto. This time, it’s tied directly to a useful service.
Lakshman put it simply. “For the people who are curious, they learn what crypto is through a real benefit. For the people who aren’t, they just get a cheap, reliable broadband connection. And they’re happy.”
A Meme Coin Meets a Connectivity Mission
This model, which lets global participants fund local connectivity, is now being tested at scale through a new campaign with BONK. Earlier this month, the company launched a collaboration with BONK, a Solana-based meme coin project with a large and engaged user base.
The campaign will see 10,000 Dabba Lite hotspots reserved for BONK participants. Each device will trigger a $20 burn in BONK tokens at activation, followed by monthly $2 burns over 18 months.
Although the choice to work with BONK might seem unconventional at first glance, Lakshman sees it as a strategic step toward bringing DePIN to a broader audience.
“We took a long look at how to increase awareness of DePIN within the broader crypto community. Most people in the space haven’t even heard of it. Our strategy is to expand to one vertical at a time, and communities were the first,” Lakshman outlined.
According to Lakshman, BONK stood out for its long-term focus and surprising depth of utility. He pointed to existing BONK-backed projects and tools like BONKbot and Bonkler, as well as the community’s role in driving Solana Saga phone adoption. But scale was also a factor.
“BONK has almost a million wallet holders, and they’ve proven they know how to get a message across. If one of the biggest challenges in DePIN is awareness, BONK gives us distribution.”
The partnership ties token burns directly to real-world usage. BONK is only burned when a hotspot is deployed and data is consumed. This mechanism, Lakshman said, creates a clear link between network activity and token utility.
“We wanted to attract people who care about long-term utility. When a BONK holder sees tokens being burned only when the internet is being used, it shows that real work is being done. It connects utility with belief.”
New SEC Chair:- There is so much happening in crypto and web3 as of now. The biggest gala of crypto leaders and champions is gathering at Token 2049 in Abu Dhabi.
Crypto market is turning bullish with BTC crossing $96,000 as of writing. XRP ETFs have been launched in Canada. Trade Fi and DeFi are integrating and innovating at an unprecedented pace.
Another such important happening is the sworn-in of new SEC Chair Paul Atlkins on April 21. Considered as the pro-crypto ally, he already has connections with the industry – holding around $6 million in crypto-related investments.
Atkins is serving out the remainder of former SEC Chair Gary Gensler’s term, which is set to expire on June 5, 2026.
From now, his over 1-year tenure as the chairman of the US’s top regulatory body – Securities and Exchange Commission (SEC) – will be pivotal for the crypto market and web3 industry.
Bitget CLO critically explains the impact of new SEC Chair on hottest trends of Web3, viz., Stablecoins, RWA Tokeniations, ETFs, regulatory clarity and expected legislations.
New SEC Chair to Led Path Towards Regulatory Clarity
Paul Atkins made his first public appearance as the new SEC Chair on April 25. In the first crypto roundtable, he sought for more clear crypto regulations for the web3 industry.
Bitget CLO Hon N. who has worked previously for Binance says, “Atkins is someone who has actively worked in the crypto industry. In the latest crypto roundtable, his message was regulatory clarity — and that’s what industry players really need.
Businesses are not asking for an open pass to do anything they want. Rather, we want clear guidance and no more confusion on what compliance looks like. Under Atkins’ leadership, we believe that the SEC will provide that clarity.
That clarity alone removes huge legal uncertainty and keeps innovation onshore.
He has called on the previous SEC administration for stifling innovation in the crypto industy from the last several years due to market and regulatory uncertainty.
During the roundtable speech, he has hinted changes to custody rules under the Exchange Act, Advisers Act, or Investment Company Act to accommodate crypto assets and blockchain technology. He is also working for a new crypto asset broker-dealer framework if needed.
As founder and CEO of Patomak Global Partners, new SEC Chair Atkins has advised numerous cryptocurrency exchanges and blockchain startups on regulatory strategy and compliance.
Since 2017, he is also serving as the co-chair of the Token Alliance which is a leading industry advocacy group that works to shape sensible crypto regulation. However, after taking office, he has resigned from both of these roles.
New SEC Chair Stakes in Securitize | Official Filings
With the increasing interest in crypto, there is a notable surge in ETF filings. There are a growing number of pending ETF applications with the SEC.
Nasdaq filed a Form S-1 today to list and trade shares of the 21Shares Dogecoin ETF. Bitwise’s proposal for a spot XRP ETF has entered its initial 90-day review window.
VanEck has also formally submitted a registration for a spot Avalanche (AVAX) ETF. Bitget CLO Hon N. seems bullish action likely for these applications with the new SEC Chair.
So, the SEC currently has over 70 altcoin ETF applications pending approval. And they are continuously delaying the decisions. It tells me that the Commission is likely working on a new framework for approval, says Bitget CLO Hon. from his over 18 years of experience in the legal and business fields, Paul Atkins might empower staff to grant “conditional approvals” for pending altcoin funds. He can set straightforward guardrails — like capital requirements and liquidity tests — so issuers know exactly which box to check.
However, these are assumptions — and while they might materialize, the new SEC chair has a lot on his plate, and not every single decision will be immediate.
Global ETF net sales totaled roughly $314.5 billion in Q1 2025. This was driven largely by the Big Three promoters—iShares (+$109.6 billion), Vanguard (+$104.0 billion), and Invesco (+$20.4 billion).
In 2024, the SEC initiated 33 crypto-related enforcement actions against major crypto companies including Ripple, Kraken. It imposed $4.98 billion in penalties for fraud and unregistered offerings.
Whatever rules the regulatory body makes under the new SEC chair will ultimately set the course for the web3 industry.
Bitget CLO believes, “Ideally Atkins should push Congress and his staff to tackle three core areas first. Stablecoin legislation tops the list: defining covered, fully-backed dollar tokens as payment instruments will secure consumer trust and let banking regulators step in.
Also, the tokenization framework needs clear, safe harbors for digital shares, bonds, and funds — aligning Investment Company Act requirements with modern platforms.
On stablecoins, he could deploy a dedicated Safe Harbor Pilot, allowing issuers to operate under transparent reserve‐audit and redemption rules for, say, 12–18 months while the SEC collects real‐world data.
Third, the SEC must finalize custody rules and a “special purpose broker-dealer” structure so exchanges and wallets can hold assets without jumping through hoops.
On the rule side, guidance on DeFi lending and staking will help protocols design compliant products. The Commission should also revisit crowdfunding limits to allow more projects to raise capital through transparent disclosures.
Can the new SEC Chair Solve the Hottest Debate of Disgreement
Classifying crypto assets as ‘security vs. commodity’ debate has been the most pressing debate for the US crypto market in the past five years. It has become the root cause of almost every major lawsuit the industy has witnessed.
Bitget CLO believes the new SEC Chair can extinguish this long-burning fire.
Atkins is uniquely positioned to draw a clearer line between securities and commodities. The recent guidance from the Commission’s crypto task force already treats fully-backed dollar stablecoins as non-securities and carves out other niche segments from SEC’s jurisdiction.
Building on that, I think he’ll lean on the Howey test’s focus on “investment contracts,” ensuring only tokens sold with profit-expectation marketing face securities rules. He has promised to work closely with the CFTC, banking agencies, and Congress to prevent overlap and confusion.
Ultimately, Atkins’ approach should leave true payment and commodity tokens in the CFTC’s scope, while investment-style tokens land squarely under SEC authority.
Can SEC turn from an Aversary to Friend for Web3
The new SEC chair can chart a new course of regulatory history by pionerring pro-crypto legislations in the country. His over 1-year tenure leaves the web3 companies and leaders hoping for better prospects and favourable landscape.
Bitget CLO concludes, eyeing “Atkins’ future industry roundtables on tokenization and DeFi. We’ll finally get targeted rules instead of broad fears.
While he won’t let fraud go unchecked, his focus on cost-benefit analysis and legislative fixes means the SEC will likely act more like a partner than an adversary.
In the long term, I expect him to propose joint roundtables with the FCA and EU authorities and to support global bodies like the Financial Stability Board in drafting voluntary guidelines. That collaborative stance will nudge national regimes toward a more interoperable, globally coherent rulebook.
My last advice for him would be to establish clear pilot programs. Instead of decades-long rulemakings, he could set short-term Safe Harbor Pilots with defined metrics for stablecoins, tokenized securities, and ETFs.
