Japan’s Finance Minister Katsunobu Kato has signaled a supportive stance toward cryptocurrencies, recognizing their role in modern investment strategies despite their volatility.
Speaking at the Web3 Conference WebX 2025 in Tokyo on Monday, Kato said digital assets could serve as an option for diversification if backed by a stable investment framework. “While crypto assets carry the risk of high volatility, by establishing a proper investment environment, they can become an option for diversified investment,” he remarked during his keynote address.
Kato also pledged to strengthen Japan’s trading environment for cryptocurrencies, noting the sector’s growing user base. His comments came months after the country’s Financial Services Agency (FSA) urged the government to overhaul its taxation model for crypto gains. The regulator has proposed shifting from the current system—where crypto is taxed as miscellaneous income at rates ranging from 15% to 56%—to a flat 20.315% tax, similar to how stock investments are treated.
The policy push coincides with major developments in Japan’s crypto economy. On Monday, local Bitcoin treasury firm Metaplanet was upgraded from a small-cap to a mid-cap stock by FTSE Russell during its September 2025 Semi-Annual Review, paving the way for inclusion in the flagship FTSE Japan Index.
Meanwhile, Japanese financial institutions continue to deepen their blockchain adoption. In recent weeks, SBI Group partnered with blockchain oracle provider Chainlink to build new crypto solutions for Asian markets. SBI has also struck fresh deals with Circle, the issuer of USD Coin (USDC), Ripple, the developer of XRP, and Web3 startup Startale.
“The establishment of this joint venture aims to promote the use of USDC in Japan and create new use cases in the Web3 and digital finance domains,”
SBI said.
Adding to the momentum, reports suggest that the FSA is preparing to authorize the issuance of yen-denominated stablecoins as early as this fall, marking another step toward integrating digital assets into Japan’s regulated financial ecosystem.
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