Japanese Finance Minister Satsuki Katayama has expressed support for integrating digital assets into traditional financial (TradFi) systems, citing the popularity of crypto exchange-traded fund (ETFs) in the United States.
According to a January 5 report from local outlet CoinPost, Katayama gave a New Year’s address at the Tokyo Stock Exchange in which she positioned 2026 as the “first year of digital” and stated that “the role of commodity and stock exchanges is important for the public to enjoy the benefits of digital assets and blockchain-type assets.”
The finance minister framed 2026 as “a turning point” to overcome deflation, a long-term structural problem that Japan faces, highlighting the example of the U.S., where, according to Katayama, digital assets are spreading as a means of hedging inflation in the form of ETFs. The minister added that similar efforts are expected in Japan.
While emphasizing the importance of responsible and proactive fiscal policy, Katayama also underscored the need for concentrated investment in growth areas, such as digital assets.
She reportedly concluded her remarks by stating that she would fully support the efforts of exchanges in Japan to create a trading environment that utilizes such cutting-edge fintech and technology.
The minister’s comments to the Tokyo Stock Exchange, urging further integration of digital assets into Japan’s traditional financial system, are in keeping with the regulatory approach the country has taken over the past year, which has been defined by efforts to fit digital assets into existing regimes rather than creating new bespoke rules.
Regulatory integration
Over the past year, Japan has increasingly stepped up its efforts to regulate the digital asset space.
In August 2025, Japan’s top financial sector regulator, the Financial Services Agency (FSA), was revealed to be exploring making the country’s tax laws more favorable to digital asset investors by introducing a flat 20% tax rate for capital gains on such investments, more in line with the treatment of stocks.
This was followed in October by Japan’s Securities and Exchange Surveillance Commission (SESC) announcing it was planning to introduce regulations banning insider trading of digital assets, with offenders to be fined based on the amount they gain through illicit transactions. This would effectively put the treatment of certain digital assets on par with traditional assets when it comes to insider trading rules.
The next month, the FSA reportedly finalized plans to reclassify 105 major digital assets, including bitcoin and ether, as financial products under existing regulations. The proposed move would further deepen ties to traditional assets and finance.
In early December, the FSA revealed plans that would require digital asset exchanges in Japan to maintain liability reserves to protect customers against losses resulting from hacks and security breaches.
The specific reserve amounts are still under review, but the proposed new rules are again reportedly expected to follow similar lines to those already in place for traditional securities firms, which are required to hold reserves ranging from ¥2 billion to ¥40 billion ($12.7 million to $255 million).
But perhaps most significantly, later that same month, the FSA released a report that proposes moving digital asset regulation from its current position under the Payment Services Act (PSA) to be governed by the Financial Instruments and Exchange Act (FIEA), which is the regulatory framework for securities markets, issuance, trading, and disclosures.
From the perspective of investor protection, the FIEA establishes various business regulations governing mediation, intermediation, investment management, and investment advice related to the buying and selling of securities, as well as requiring the proper management of assets entrusted to customers.
If these various measures are all approved, by the end of 2026, digital assets could be effectively treated the same way as TradFi assets, such as securities, in Japan.
Some crypto-advocates may find this inappropriate for an innovative and distinct asset class that boasts unique characteristics not associated with many TradFi products, favoring bespoke regulation such as the European Union’s Markets in Crypto-Assets Regulation (MiCA) instead.
However, one could equally take the view—as it appears finance minister Katayama does—that this integration with TradFi amounts to a greater legitimization of this relatively new and volatile asset class, one that benefits the consumer, the economy, and the digital asset industry.
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Source: https://coingeek.com/japan-fm-pushes-digital-assets-into-traditional-finance/