Minister Katō Calls Crypto a Strategic Asset
Speaking at the WebX2025 Digital Assets Forum in Tokyo on August 25, Japan’s Finance Minister Katsunobu Katō made a bold declaration: cryptocurrencies should be recognized as part of diversified investment portfolios.
Katō said, stressing that Japan must create a conducive environment for digital assets to minimize risks while fostering innovation. He criticized the current burdensome regulations, arguing they “suffocate the sector” and discourage innovation.
Crypto Adoption and Stablecoin Breakthroughs
Katō’s comments come as Japan steps up efforts to integrate digital assets into its economy. Just last week, the Financial Services Agency (FSA) approved the country’s first yen-backed stablecoin, launched by Tokyo-based startup JPYC.
The stablecoin approval highlights Japan’s seriousness about building a robust crypto ecosystem that can compete globally.
Tax Reforms and Investor Protections on the Horizon
Japan’s crypto strategy also includes tax reforms and investor protection measures. Currently, crypto profits can be taxed as high as 55%, but authorities are considering moving digital assets to a tax group capped at 20%, making it more attractive for retail investors.
The Liberal Democratic Party (LDP) has pledged to introduce insider trading rules for digital assets, mirroring protections in the stock market. This move aims to protect retail investors and reignite trust in Japan’s financial system.
Controversy and Global Interest
Not everyone is aligned with Katō’s vision. Critics worry about the risks of state-level crypto integration, but some analysts see this as a step toward a strategic Bitcoin reserve.
Bitwise’s André Dragosch questioned whether Japan could follow countries like Bhutan and El Salvador by building sovereign Bitcoin holdings. Meanwhile, Eric Trump, son of U.S. President Donald Trump, is reportedly eyeing Japan for Web3 expansion and will attend Metaplanet’s shareholder meeting, the second-largest corporate Bitcoin holder in Asia.
Toward ETFs and Global Alignment
Industry insiders believe Japan’s reforms could pave the way for the country’s first spot Bitcoin ETF, aligning its markets more closely with the U.S. and Canada.
Katō’s remarks signal a historic shift in Japan’s financial direction, positioning the country as a potential hub for regulated crypto adoption.
