Japan’s Finance Minister Satsuki Katayama announced on January 5 that the government will support the integration of blockchain-based digital assets into the country’s stock exchanges and commodity exchanges, signaling a major shift in Japan’s financial policy.
BREAKING: Japan's Finance Minister backs full crypto integration on stock exchanges, calls 2026 the "digital year" for innovative trading.
Why this matters: Could unlock mainstream adoption in Japan, blending TradFi with crypto for liquidity and legitimacy. #Japan… pic.twitter.com/ziOQbrw5I6
— Bitcoin Magazine NL (@BitcoinMagNL) January 6, 2026
Speaking at the New Year’s opening ceremony of the Tokyo Stock Exchange, Katayama described 2026 as “Japan’s Digital Year One,” marking the beginning of a fundamental transformation of the nation’s financial system.
According to a statement from the Ministry of Finance, Japan plans to move the regulatory framework for cryptocurrencies away from the Payment Services Act and into the Financial Instruments and Exchange Act, effectively placing digital assets under securities law.
As a result, 105 cryptocurrencies , including Bitcoin (BTC) and Ethereum (ETH) , are expected to be formally reclassified as financial instruments, bringing them under stricter investor protection and compliance standards.
Crypto Tax Reform: Flat 20% Capital Gains Tax and Loss Carryforward Planned
The government is also considering a comprehensive overhaul of cryptocurrency taxation.
Proposed reforms include:
A 20% flat, separate capital gains tax on crypto transactions
The ability to carry forward crypto-related losses for up to three years
This would replace Japan’s current progressive tax system for crypto gains, which has long been criticized as complex and punitive.
Japan’s Financial Services Agency (FSA) has already approved the yen-pegged stablecoin JPYC, while Ripple is preparing to introduce its RLUSD stablecoin into the Japanese market.
Katayama emphasized that digital assets should no longer be treated as speculative side investments, but rather as a core component of a modernized financial system.
The proposed tax reforms are expected to improve investor protection, boost market participation, and enhance regulatory clarity.
Transparency and Global Competitiveness Drive Policy Shift
Against the backdrop of prolonged deflationary pressures and rapid global crypto adoption, the Ministry of Finance now views digital assets as part of Japan’s broader economic growth strategy.
The FSA has indicated that cryptocurrencies should be handled alongside traditional financial products within existing banking and securities frameworks. Major financial players such as SBI Group and Ripple are already preparing for the new regulatory environment through ETF applications and stablecoin development.
By leveraging existing exchange infrastructure, the government aims to ensure transparency, liquidity, and investor protection while integrating digital assets into mainstream financial markets.
While no specific implementation timeline was announced, Katayama confirmed that regulators and financial institutions are already preparing the necessary documentation.
This strategic pivot could transform Japan from a historically cautious regulator into a global leader in digital asset finance, potentially accelerating growth across the broader crypto market, including Bitcoin.
