The Japanese Minister of Finance supports crypto trading, welcomes 2026 as a "digital era"

A significant step towards modernizing Japan’s regulatory landscape has become clear as Finance Minister Satsuki Katayama expressed strong support for the entry of Crypto trading services into the country’s major stock exchanges. During a ceremony on January 5 in Tokyo marking the first trading session of the year, Katayama emphasized the critical role that regulated marketplaces should play in boosting digital asset adoption in Japan.

Service Examples: The Role of Regulated Trading Platforms

Katayama’s message was clear—organized and regulated service examples will form the foundation for broader access to crypto assets. “To benefit the public from the advantages of digital assets and blockchain technology, the role of securities and commodity exchanges is critical,” he stated, indicating a new policy direction.

This position responds to Japan’s long-standing separation of its crypto market from traditional capital markets. Historically, digital assets have been regulated under the Payment Services Act rather than the securities regulation framework that covers stocks and bonds. However, regulators are now actively examining the shift of crypto into the securities framework to better control and monitor the use of these assets.

Regulatory Framework Reforms and Taxation for 2026

Japan’s Financial Services Agency has developed a comprehensive plan to overhaul the regulatory and tax treatment of crypto before the fiscal year 2026. The proposed reforms include shifting crypto income to a more flat tax structure and deeper alignment of digital assets with traditional financial products.

The goal is simple but broad: to keep crypto activity active within Japan while enhancing consumer protection and market transparency. Industry participants have long argued that such reforms are essential to ensure the country’s competitive advantage in the global digital asset landscape.

Inspiration from the US Market: ETF Model and Innovation

In his statement, Katayama also pointed to the success of crypto investment examples in the United States as a model. “In the US, ETF structures have become a significant part of the crypto adoption strategy against inflation, and we expect similar innovation in Japan,” he said. This reference demonstrates the government’s openness to more accessible and mainstream investment vehicles for digital assets.

Such service examples from other countries provide a blueprint for how access to the crypto market can be democratized while maintaining regulatory safeguards.

Next Steps: Balancing Innovation with Oversight

The goal of the Financial Services Agency is to combine regulatory modernization with mandatory liability reserves for crypto exchanges, which will strengthen market stability and consumer protection. The entire initiative has already reached proposals to mandate higher security standards and transparency requirements for all crypto trading platforms operating in Japan.

The new stance of the Minister signals a shift from cautious governance to a structured integration of the crypto ecosystem. By stating, “As Finance Minister, I will fully support the efforts of exchanges to develop a modern trading environment powered by fintech,” Katayama has issued a decisive commitment to the 2026 regulatory vision.

Japan’s crypto market’s road ahead depends on the successful implementation of these regulatory reforms and effective collaboration between government agencies and trading platforms offering service examples that follow international best practices. In the context of global competition in digital asset innovation, this move could be a turning point for Japan’s position in the cryptocurrency sector.