Japan’s Finance Minister, Mitsuki Katayama, officially declared 2026 as the "Year Zero" for digital assets at the Tokyo Stock Exchange’s New Year opening ceremony. She emphasized that for the public to truly benefit from digital assets and blockchain-based assets, the market infrastructure of commodity and securities exchanges will play a critical role.
Japan is shifting its crypto asset regulation from the Payment Services Act to the Financial Instruments and Exchange Act, formally defining crypto as a financial product rather than a payment tool. A series of reforms around taxation, regulatory access, and market structure are being rolled out in tandem.
Policy Declaration
Japan’s Finance Minister and Minister for Financial Services, Mitsuki Katayama, officially designated 2026 as the "Year Zero" for comprehensive digital asset integration at the Tokyo Stock Exchange’s New Year opening. She stressed that to ensure citizens fully benefit from digital and blockchain assets, exchanges and related market infrastructure must play a pivotal role. This official stance signals a major shift in Japan’s national strategy toward digital assets.
Her remarks echoed Japan’s recent regulatory trend of integrating crypto assets with traditional capital markets. Katayama cited the US market as an example, noting that crypto assets have become a tool for the public to hedge against inflation through exchange-traded funds, hinting that Japan may consider a similar approach. Her comments are part of a broader, systematic legal and regulatory reform. The Japanese government plans to amend the Financial Instruments and Exchange Act to bring crypto assets under its regulatory framework. This change will subject crypto assets to requirements similar to those for securities, including information disclosure, bans on insider trading, and strict restrictions on market manipulation.
Regulatory Framework
Japan’s approach to crypto asset regulation is shifting from treating them as "means of payment" to "financial products." The Financial Services Agency (FSA) plans to move crypto regulation from the Payment Services Act to the Financial Instruments and Exchange Act. This means crypto assets will be officially classified as financial products, subject to the same regulatory standards as stocks and bonds. The legal amendment is expected to be submitted in 2026, closing the regulatory gap regarding insider trading rules for crypto assets. For the first time, insider trading bans will apply to digital asset transactions. Any crypto trades based on non-public, material information will be considered illegal. The regulatory overhaul also covers registration requirements for service providers. In the future, companies offering crypto services in Japan will need to register with the FSA, and this rule may also apply to overseas platforms operating in Japan.
The Japanese government is also considering new regulations requiring crypto custody and management service providers to register with regulators, and exchanges will be allowed to use only registered service providers.
Tax Reform
Japan’s government has approved a major tax reform, planning to slash the capital gains tax on crypto from a unified rate of up to 55% down to 20%. This will align the tax treatment of crypto assets with that of stocks and investment funds. Specifically, the ruling coalition detailed the new tax approach for crypto assets in its 2026 tax reform outline, released on December 19, 2025. The new regime will cover spot trading, derivatives trading, and returns from crypto ETFs.
According to Nikkei, this tax reform will apply to "specified crypto assets" handled by firms registered as Financial Instruments Business Operators. This means mainstream cryptocurrencies like Bitcoin and Ethereum are likely to qualify, though the exact scope remains to be clarified. The new tax system also introduces a three-year loss carryforward mechanism, allowing investors to offset trading losses against future gains. This tax optimization will significantly improve the trading environment for Japanese crypto investors and may attract more capital to the sector.
Institutional Participation
As the regulatory landscape becomes clearer, Japan’s traditional financial institutions are actively preparing to enter the crypto asset space. Six major asset management firms plan to launch Japan’s first regulated crypto investment trusts under the new securities law by 2026. These firms include Daiwa Asset Management, Asset Management One, Amova, Mitsubishi UFJ, and others. The FSA’s goal is to expand investor protection and market access by reclassifying digital assets.
SBI Global Asset Management has already developed detailed plans to launch Bitcoin and Ethereum ETFs, as well as multi-asset crypto trusts. Company President Tomoya Asakura linked this to the shift of household funds into regulated investments, setting a target of 5 trillion yen in assets under management within three years.
Meanwhile, Nomura Asset Management has established a dedicated working group to guide its revamped crypto strategy. Daiwa Securities is also coordinating with Global X Japan to support its ETF plans. Japanese banks may also directly enter the crypto market. The FSA is considering revising the regulatory framework to allow local banks to directly hold, trade, or custody digital assets like Bitcoin under regulated conditions.
Market Integration
Japanese regulators have made it clear that traditional securities exchanges will serve as the primary entry point for crypto assets. This policy direction is already reflected in specific market access management. In February 2025, regulators required Apple and Google to remove apps linked to unregistered crypto exchanges. This sent a clear message: Japanese users will only have legal access to platforms compliant with local regulations.
Market integration measures also include support for stablecoin projects. Regulators are exploring ways to allow compliant financial institutions to play a greater role in the crypto asset market. Policymakers are also discussing custody rules requiring registered service providers to manage crypto assets. These steps respond to recent global security incidents and aim to strengthen the ecosystem’s overall security.
It’s worth noting that Japan already has about 13 million crypto accounts on local exchanges. With lower taxes, clearer regulations, and more regulated products, this number is expected to grow significantly after 2026.
As of January 6, 2026, according to Gate market data, the price of Bitcoin stabilized at the start of the year after a correction at the end of 2025. Ethereum continues to attract market attention as its ecosystem evolves. The clarification of Japanese market policies provides strong long-term fundamentals for mainstream crypto assets. While some regulatory details are still being finalized, Japan has already stepped up enforcement against unregistered overseas platforms. Late last year, Bybit announced it would gradually cease services for Japanese users starting in 2026, citing local regulatory requirements and registration rules. On Tokyo’s digital billboards, ads for crypto trading apps now appear alongside traditional financial products. In a country long known for its cautious approach to fintech, Japan has now fully opened the door to digital assets.
