Japan Finance Minister Champions Crypto on Stock Exchanges, Dubs 2026 the ’Digital Year’

Japan's top financial regulator just threw gasoline on the crypto fire. The Finance Minister publicly endorsed listing digital assets on traditional stock exchanges—a move that could bridge the chasm between legacy finance and the blockchain frontier.

The Regulatory Green Light

Forget subtle nods; this is a full-throated endorsement from one of the world's largest economies. The minister's backing signals a seismic shift in institutional acceptance, potentially opening the floodgates for regulated, mainstream crypto investment vehicles directly on major bourses. It’s a direct challenge to the old guard's cautious, often dismissive, stance.

2026: The Digital Year Mandate

The declaration wasn't vague optimism. The minister pinned a hard deadline: 2026 is officially Japan's 'Digital Year.' This isn't about pilot programs or think-tank reports. It's a policy mandate for full-scale digital asset integration, pushing bureaucrats and bankers alike to build the infrastructure—or get left behind. Watch for the Financial Services Agency (FSA) to fast-track frameworks that have been stuck in committee for years.

The implication is clear: Japan aims to reclaim its spot as a financial innovation hub, using digital assets as the lever. They’re betting that clear rules attract capital, even from the most risk-averse pension funds—after all, nothing soothes a traditional investor like a government stamp of approval, even on the wildest of assets.

This pivot cuts through the regulatory fog that has stalled progress elsewhere. It bypasses the endless debate and targets tangible integration. While other markets dither over investor protection, Japan is placing its bet on structured access. A cynical finance veteran might note that nothing boosts a ministry's budget and influence like championing the next big thing—especially when traditional revenue streams are looking a bit thin.

The race to institutionalize crypto just found its pace car. And for once, it's not a tech startup at the wheel, but a finance minister with the keys to the entire stock market.

Japan wants in on the crypto ETF wave.

Finance Minister Katayama Satsuki announced government support for integrating digital assets into the country’s stock and commodity exchanges. She made the statement during her New Year address at the Tokyo Stock Exchange on Monday.

Katayama called 2026 the “first year of the digital era” and pointed directly to US crypto ETFs as a model worth following.

“For the public to benefit from digital assets – specifically blockchain-based digital assets – we must leverage the strength of commodity and securities exchanges,” Katayama said.

She noted that in the United States, crypto ETFs “are spreading as a risk hedge against inflation for citizens.”

As Minister of State for Financial Services, she pledged full support for exchanges developing trading infrastructure around fintech.

Japan Slashes Crypto Taxes to 20%

The announcement comes alongside major policy changes already locked in for 2026.

Japan will cut its crypto tax rate from a maximum of 55% down to a flat 20%. This brings digital assets in line with stocks and other traditional investments. The government has also reclassified 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act.

Investors can now carry forward crypto trading losses for up to three years. SBI Holdings has been waiting to file for ETFs. Ripple is also set to launch its RLUSD stablecoin in Q1 with SBI Holdings support.

Why This Matters Beyond Japan

Japan is the largest foreign holder of US Treasury bonds at roughly $1.2 trillion. Any MOVE by Japanese institutions toward digital assets could send ripples through global crypto markets.

The country’s Financial Services Agency approved its first yen-pegged stablecoin, JPYC, back in October. The FSA has also discussed letting banks hold and trade crypto directly.

Katayama described 2026 as a “turning point” for tackling Japan’s economic challenges through fiscal policy and investment in growth sectors.