Key Points
- Japan plans to integrate crypto trading into regulated stock and commodity exchanges.
- Authorities aim to strengthen oversight by aligning digital assets with existing financial laws.
Japan’s Finance Minister Satsuki Katayama stated that the government supports crypto trading through regulated stock and commodity exchanges. The approach reflects a goal to place digital assets within established financial systems rather than outside them.
Speaking at the New Year opening ceremony of the Tokyo Stock Exchange, Katayama described 2026 as Japan’s “digital year.” She indicated that the country intends to move crypto trading into existing market infrastructure.
The comments suggest that Japanese authorities want crypto growth to occur under familiar rules, supervision, and investor protection standards. Trading digital assets in regulated venues is seen as a way to ensure consistency with broader financial oversight.
Exchanges as the Primary Access Point
Katayama said traditional exchanges should serve as the main entry point for the public to access digital assets. Officials believe these venues are more trusted by retail investors than standalone crypto platforms.
Using established exchanges is viewed as a way to reduce risks for new participants and simplify regulatory supervision. Familiar systems also allow authorities to monitor activity more effectively.
The government is observing developments in overseas markets, including the United States, where crypto-linked exchange products trade on major venues. Although Japan does not currently permit crypto ETFs, exchange-based trading is considered a foundation should such products be approved later.
Shift Toward Securities-Based Oversight
In December, Japan’s Financial Services Agency proposed moving crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act. This legal framework already applies to stocks and investment funds.
Under the proposed structure, major cryptocurrencies would be treated as financial products, introducing stricter disclosure requirements and stronger enforcement standards. Regulators argue that most crypto activity is driven by investment rather than payments.
Enforcement has already intensified, with authorities requesting app stores in early 2025 to remove apps connected to unregistered overseas exchanges. Access for Japanese users now depends on local approval and regulatory compliance.
Japan is also adjusting its tax approach by supporting a reduction of crypto gains tax to a flat 20%, aligning it with rates applied to stocks and funds. This would replace the current progressive system that can reach higher levels.
Stablecoins are included in the integration strategy, with regulators approving the yen-backed stablecoin JPYC and allowing banks to explore custody and trading services. These measures aim to connect digital assets directly with the banking system rather than creating a separate crypto economy.
