Japan is getting ready to make digital assets a bigger part of its financial system through a controlled, institution-led approach. Finance Minister Satsuki Katayama spoke at the Tokyo Stock Exchange on New Year’s Day about how the government would help connect blockchain-based assets with traditional financial markets. Her comments made digital finance a key part of Japan’s long-term economic plan.
Katayama said that stock and commodity exchanges are important parts of this change. She said that exchanges are safe places where people can buy and sell digital assets without breaking the rules or disrupting the market. Japan prefers to use established financial institutions instead of letting unregulated growth happen, which is what this focus shows.
She used examples from other countries to show how policies could go in different directions. Katayama pointed to the US, where crypto exchange-traded funds work in regulated markets and some investors use them to protect themselves from inflation. Japan doesn’t allow domestic crypto ETFs right now, but the comparison could lead to talks in the future.
The finance minister called 2026 Japan’s “digital year” and said it would be a big year for the country. She said that the government wants to help exchanges build better trading systems by using new digital technologies. This timeline suggests that changes to the structure will happen slowly over time instead of all at once.
Digital assets were also part of Japan’s bigger economic plan. Katayama said that this is a key time to deal with problems that have been around for a long time, like deflation. Digital finance was shown to be one part of a larger plan to change things that included fiscal policy, investment, and sectors that are focused on growth.
Recent actions by regulators back this move. Japan’s Financial Services Agency talked about plans in October that would let banks hold and trade cryptocurrencies along with regular assets. That same month, regulators gave the green light to JPYC, the first stablecoin in Japan that is pegged to the yen.
In November, progress was still being made on regulations. The FSA made the final decision to treat 105 major cryptocurrencies as financial products under current laws. Bitcoin and Ethereum are on the list, which would make them more like traditional financial services.
There is also a review of tax policy. In Japan, the tax rate on crypto gains can be as high as 55%. Authorities are thinking about lowering the rate to 20% so that digital assets are more like other types of investments.
These steps show that there is a coordinated effort to bring digital assets into Japan’s financial system through regulation, institutional involvement, and a phased implementation.
