Étienne Girard
Japan is accelerating its move toward digital finance as Finance Minister Satsuki Katayama publicly endorsed deeper integration of digital assets and blockchain technology into the country’s traditional financial system.
Speaking during a New Year event at the Tokyo Stock Exchange, Katayama highlighted the growing importance of modern trading infrastructure in expanding public access to crypto-related products.
Katayama emphasized that stock and commodity exchanges play a critical role in bringing blockchain-based assets to a wider investor base. By leveraging established market structures, these platforms could serve as the primary bridge between traditional finance and emerging digital markets.
Pointing to developments in the United States, Katayama referenced the success of crypto exchange-traded funds (ETFs) as tools for inflation hedging and portfolio diversification. While Japan currently lacks domestically listed crypto ETFs, the comments suggest that similar products could eventually emerge in the local market.
2026 Declared Japan’s “Digital Year”
The finance minister officially labeled 2026 as the “Digital Year,” pledging full governmental support for exchanges seeking to build next-generation trading environments powered by advanced technologies. The initiative aims to position Japan as a leader in financial innovation.
Digital Assets Part of a Broader Economic Reset
Beyond crypto, Katayama described the coming year as a turning point for tackling Japan’s structural economic challenges, including long-standing deflation. She pointed to targeted fiscal policies and investment in growth-oriented sectors as key drivers for revitalizing the economy.
Japan Advances Crypto Regulatory Reform
Japan has already taken meaningful steps toward becoming a regional crypto hub. In late 2025, the Financial Services Agency (FSA) explored proposals that would allow banks to hold and trade cryptocurrencies in a manner similar to stocks or government bonds.
Stablecoins, Token Classification, and Tax Cuts on the Table
Regulatory momentum continued with the approval of JPYC, Japan’s first yen-pegged stablecoin. In addition, regulators finalized plans to reclassify 105 major cryptocurrencies, including Bitcoin and Ethereum, as financial products, potentially unlocking wider use cases across traditional finance.
Authorities are also considering a significant reduction in crypto taxation, with proposals to cut the top rate from 55% to 20%, a move that could dramatically improve Japan’s competitiveness in the global digital asset market.
