Japan’s finance minister calls for supportive crypto environment

Katsunobu Katō, a Minister of Finance of Japan, has recommended that the country create a supportive environment for the crypto ecosystem. According to Katō, Japan’s strategies in diversified investment should include cryptocurrencies.

During a digital assets forum WebX2025 in Tokyo held on Monday, August 25, the financial minister highlighted digital assets’ capability to fit into broad portfolios. 

He also mentioned a list of risks encompassing the digital assets. To curb this, Katō stated that establishing a conducive investment atmosphere is essential in reducing these risks. In a statement, he acknowledged that “these crypto assets could be part of diversified investments.” Concerning the regulations for the innovation sector, the financial minister noted that they are burdensome and suffocating the sector. Hence, introducing crypto in the trading system will act as a new trade channel to enhance innovation without the availability of unnecessary obstacles.

Japan intends to include crypto assets in its economic investment portfolio 

Minister Katō’s pro-crypto stance has raised controversy among individuals. For instance, in a recent X post, André Dragosch, a Director and Head of Research – Europe at Bitwise, asked whether Japan’s economic transition towards cryptocurrency oversight would enable the country to establish a strategic Bitcoin reserve.

Considering Japan’s seriousness in venturing into crypto, US President Donald Trump’s son Eric Trump has reportedly eyed the country to expand his family’s Web3 business. Moreover, he will attend Metaplanet’s shareholder meeting, the second-largest corporate Bitcoin holder in Asian content.

To mark the process of crypto adoption in Japan, research from reliable sources highlighted that last week, Japan’s Financial Services Agency (FSA) had approved the launch of a yen-denominated stablecoin, the country’s first stablecoin that is pegged to its yen. JPYC, a startup in Tokyo, will lead this project.

Jamie Elkaleh, the Chief Marketing Officer at Bitget Wallet, also weighed in on the topic of discussion. According to  Elkaleh, yen stablecoins are an important aspect of the economy. They could simplify cross-border transactions, attract institutional investors striving for efficiency, and offer liquidity for government bonds that serve as collateral. 

In the meantime, several significant improvement plans have been set for the crypto ecosystem. For example, profits achieved from the crypto sector in Japan are currently subjected to tax rates as high as 55%. However, relevant authorities intend to shift this sector to a different tax group, which would reduce this rating to 20%.

The Japanese ruling party, the Liberal Democratic Party (LDP), has also pledged reforms such as implementing insider trading regulations similar to those applicable to stocks. This plan primarily prevents malicious actors from illegally accessing and benefiting from inside details.

The WebX2025 event was scheduled for August 25 to 26 in Tokyo. Among the prominent figures present were Japan’s Prime Minister Shigeru Ishiba, Minister of Finance Katsunobu Kato, and the Governor of Tokyo Yuriko Koike. Industry executives such as Justin Sun, Changpeng CZ Zhao, Mike Novogratz from Galaxy, and Arthur Hayes from Maelstrom also attended the event.

Japan implements new crypto initiatives to create a conducive environment for crypto 

Japan’s new crypto initiative aims to enhance retail investors’ confidence in the country’s domestic market, boosting their participation, and reigniting their trust in its financial system. This comes after Japan doubtfully disapproved of digital assets for several years.

Another significant change in Japan’s trade framework is the categories put in place for digital assets. Suppose the digital assets are viewed as financial products under the Financial Instruments and Exchange Act. In that case, the relevant regulators will implement transparency and disclosure rules like those in the stock market.

This action is anticipated to open the door for Japan’s first spot Bitcoin ETF, enabling it to align with the United States and Canadian markets closely.

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