Japanese Finance Minister Katayama Satsuki fully supports cryptocurrencies entering stock exchanges and designates 2026 as Japan's Digital Year

Japanese Finance Minister Satsuki Katayama (Satsuki Katayama) recently announced support for integrating cryptocurrency trading services into securities exchanges, setting 2026 as Japan’s “Digital Year,” signaling the Japanese government’s active push to mainstream cryptocurrencies into the financial system.

Finance Minister Katayama Declares 2026 as Japan’s Digital Year

On January 5, 2026, during the New Year celebration at the Tokyo Stock Exchange, Katayama delivered several important policy proposals related to cryptocurrencies and digital assets, declaring 2026 as Digital Year One (Digital Year), emphasizing accelerating digital transformation and incorporating digital assets into the mainstream financial system. The main points are as follows:

Supporting Cryptocurrency Entry into Exchanges: Katayama explicitly supports integrating cryptocurrency trading into regulated securities and commodity exchanges, believing that supervised platforms are crucial for expanding cryptocurrency adoption.

Promoting Cryptocurrency ETFs: Citing the success of U.S. spot cryptocurrency ETFs, Katayama believes ETFs are effective hedging tools against inflation and hopes Japan can establish similar investment mechanisms.

Tax and Regulatory Reforms: The government plans to unify the maximum tax rate on cryptocurrency profits (originally up to 55%) to a separate tax rate of 20%, aligning it with stock tax rates.

Legal Status Adjustment: The plan is to reclassify approximately 105 mainstream cryptocurrencies as financial products under the Financial Instruments and Exchange Act, enhancing their legal status as traditional investment targets.

According to Japanese cryptocurrency news site Coinpost, Satsuki Katayama stated during the New Year’s first stock market trading day ceremony in Tokyo on January 5 that regulated trading venues are vital for increasing social acceptance of cryptocurrencies and blockchain assets. She emphasized that for the general public to safely and effectively enjoy the benefits of digital assets, securities and commodity exchanges must play a central role.

For a long time, Japan’s digital asset trading has been distinctly separated from traditional capital markets. Cryptocurrencies are mainly regulated under the Payment Services Act, not the securities laws applicable to stocks and bonds, leading to a regulatory framework that views digital assets as payment or settlement tools rather than investment commodities. This structure also makes it difficult for cryptocurrencies to circulate within mainstream financial venues like securities exchanges.

However, as the market size and financial influence of digital assets continue to grow, Japanese regulators are re-evaluating existing systems. Katayama indicated that relevant authorities are considering incorporating some cryptocurrencies and digital assets into the securities regulation framework to better align their legal status and supervision with actual usage scenarios and risk characteristics.

Learning from the US Experience in Institutionalizing Cryptocurrencies to Attract Foreign Investment

Katayama also referenced overseas experience, pointing out that the U.S. has actively promoted the institutional development of cryptocurrency investment products in recent years, especially through ETF structures, making digital assets a tool within investment portfolios to combat inflation. She suggested that Japan might develop along similar lines in the future, demonstrating the government’s openness to more mature, compliant crypto investment products. Beyond regulation, tax reform is also a key policy shift. Katayama revealed that Japan’s Financial Services Agency is pushing for a comprehensive review of cryptocurrency regulation and taxation systems, aiming to complete relevant reforms before the 2026 fiscal year. This includes adjusting the taxation method for cryptocurrency gains to resemble the flatter tax system applied to stocks and other financial products, reducing the burden on investors and businesses.

Industry experts generally believe that Japan’s previously high and complex cryptocurrency tax burdens have been a significant factor driving innovation out of the country. If the tax and regulatory environment can be made more reasonable, it will help attract blockchain and fintech companies to stay and develop in Japan. Katayama stated that as Finance Minister, she will fully support exchanges and related institutions in creating a trading environment that combines cutting-edge financial technology with sound regulation. This statement is also seen as a sign that the Japanese government is gradually shifting from a risk-averse approach to a more institutionalized and structured integration and management of digital assets.

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