Japan’s Minister of Finance Satsuki Katayama expressed strong support for integrating digital assets into traditional financial systems during her New Year’s address at the Tokyo Stock Exchange on Monday.
According to a report from CoinPost, Katayama stated that stock and commodity exchanges play a “crucial” role in providing broader public access to digital and blockchain-based assets.
The minister drew examples from the U.S., particularly how crypto exchange-traded funds have become a popular tool for investors to hedge against inflation. This suggests that similar developments could take place in Japan, the report noted. As of today, there are no domestic crypto ETFs available for local traders.
Katayama designated 2026 as the “digital year” and vowed to provide full support for stock and commodity exchanges in establishing an innovative trading environment that utilizes cutting-edge technology.
Beyond digital assets, Katayama said this year will be a “turning point” for addressing Japan’s long-term structural challenges, such as deflation, through fiscal policies and investments in growth sectors, according to the report.
Crypto reform
Japan has made efforts in the previous year to reform its financial system to reinvent itself as a crypto hub. In October, the Financial Services Agency reportedly discussed potentially allowing banks to trade and hold crypto assets such as stocks and government bonds. The FSA also approved the country’s first yen-pegged stablecoin, JPYC, in the same month.
The agency also finalized plans in November to reclassify 105 major cryptocurrencies, including bitcoin and ether, as financial products under existing regulations. This may open up further utilization of the tokens in traditional finance. Additionally, authorities are seeking to lower the tax rate on those cryptocurrencies from the current maximum of 55% to 20%.
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