Japan continues to take significant steps regarding Bitcoin and cryptocurrencies, and these steps are receiving full support from the government.
At this point, as Japan prepares for a radical change in the taxation of cryptocurrencies with its 2026 tax reform draft, Japanese Finance Minister Satsuki Katayama has made a statement supporting cryptocurrencies.
Satsuki Katayama, in her New Year’s address at the Tokyo Stock Exchange, stated that they support the integration of cryptocurrencies like Bitcoin (BTC) into the traditional financial system.
Japan’s Finance Minister stated that he sees the integration of cryptocurrencies into the traditional financial system as an important next step.
The minister stated that stock and commodity exchanges play a crucial role in providing access to digital assets and blockchain-based assets.
Katayama stated that the government has declared 2026 as the Digital Year and pledged to actively support these exchanges to create an innovative trading environment.
Finally, the minister gave examples from the US, particularly highlighting how cryptocurrency ETFs have become popular as a hedge against inflation for investors.
Currently, there are no domestic cryptocurrency ETFs available for local investors in the Japanese market, but the minister signaled that similar developments could occur in Japan.
As you may recall, the Financial Services Agency (FSA) announced in the final weeks of 2025 that it would reclassify 105 major cryptocurrencies, including Bitcoin and Ethereum, as financial products under existing regulations. At this point, officials also stated their aim to reduce the tax rate on these cryptocurrencies from the current maximum of 55% to 20%.
*This is not investment advice.
