Tokyo’s biggest financial service firm, SBI Group, will now allow general Japanese investors to purchase cryptocurrencies via its newly launched ‘crypto-asset fund.’ The fund comprises seven cryptocurrencies, including Bitcoin, Ethereum, Litecoin, XRP, Bitcoin Cash, Chainlink, and Polkadot. The crypto-asset fund, to be traded and operated by the SBI Alternative Fund, was established on Dec. 02 with a dedicated capital of 5 million yen, worth approximately $45,000.
Cryptocurrencies can only be purchased by customers who meet certain standards.
According to the official statement, investors will be required to go through an application process that includes an anonymous partnership agreement with SBI Alternative Fund prior purchases. The company’s reasoning behind this move states: “Since it is not suitable for all customers, it can only be purchased by customers who meet certain standards set by our company.” In addition, the crypto investments made by such anonymous associations will be handled by SBI VC Trade, a sister firm dealing with cryptocurrency trading. SBI also highlighted that none of the seven cryptocurrencies in the crypto-asset fund would exceed 20% in ratio.
Investors will be subject to unrealized capital gains taxes.
Assuring the longevity of the service, SBI has stated that the fund “cannot be canceled within one year” between Feb. 1, 2022, to Jan. 31, 2023. Investors will also be subject to unrealized capital gains taxes in addition to bearing other shared expenses, including establishment and liquidation costs and audit expenses. SBI has set an age limit between 20 to 70 for this fund and will enforce a three-month locking period for every purchase “aiming to reduce investment risk by diversifying time.” The company will also rebalance the investment ratio allocation once every month.