Japan Signals Major Crypto Shift as Government Backs Exchange Integration
Japan’s Finance Minister announced on January 5 that the government will support the integration of cryptocurrencies into the country’s stock exchanges, marking a pivotal shift in financial policy. The move, dubbed the "digital year" for 2026, aims to blend traditional finance with digital assets, enhancing liquidity and legitimacy.
Speaking at the New Year’s opening ceremony, the minister outlined plans to reclassify cryptocurrencies under securities law, shifting regulatory oversight from current frameworks to stricter investor protection standards. This includes a proposed 20% flat capital gains tax on crypto transactions and a three-year loss carryforward provision, replacing the existing progressive tax system.
The reforms could unlock mainstream adoption, positioning Japan as a leader in innovative trading. Market participants anticipate heightened activity across major exchanges as regulatory clarity emerges.
