Japan backs regulated exchanges as digital asset gateway

Japan’s finance minister signalled that cryptocurrencies should be accessed primarily through regulated exchanges and traditional market infrastructure.

Finance Minister and Financial Services Minister Satsuki Katayama made the remarks at the Tokyo Stock Exchange’s New Year opening ceremony.

Katayama described 2026 as Japan’s first year of full-scale digitalisation aligned with traditional capital markets.

To ensure citizens benefit from digital and blockchain-based assets, the role of exchanges and market infrastructure will be essential.

Satsuki Katayama said.

The comments reflect Japan’s broader push to integrate crypto into existing securities-style regulation.

Regulators plan to shift crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act.

The proposed framework would treat crypto assets as financial products with stricter disclosure and enforcement rules.

Japan is also moving to introduce a flat 20% tax on crypto profits, replacing rates that could reach as high as 55%.

Authorities have stepped up enforcement against unregistered overseas exchanges operating in Japan.

In February 2025, regulators requested the removal of apps linked to unregistered crypto exchanges from app stores.

Some platforms have begun exiting the Japanese market as a result of tighter registration requirements.

Officials continue to support bank-led digital asset initiatives within regulated financial structures.