Key Takeaways
-
Japan’s Finance Minister declared 2026 as “Digital Year One.”
-
Digital assets, such as crypto, will align with traditional assets, including stocks, through tax cuts and regulations.
-
Reforms aim to boost investments, ETFs, and shift savings into growth sectors.
Japan’s Finance Minister, Satsuki Katayama, said 2026 will mark “Digital Year One,” signaling a push to accelerate digital transformation across the country’s financial system.
The initiative aims to bring digital assets, including cryptocurrencies, further into the financial mainstream, placing them alongside traditional investments such as stocks and bonds.
Japan was among the first countries to introduce regulations for cryptocurrency trading, but over time, it fell behind as the global crypto market evolved.
What began as a progressive approach gradually became more cautious, with regulators being slow to approve or integrate new crypto products.
That stance now appears to be changing.
The government that took office in October has made digital assets a priority for 2026, signaling a renewed push to modernize Japan’s financial system.
Finance Minister Satsuki Katayama, who assumed office on Oct. 21, 2025, became Japan’s first female finance minister.
Katayama has repeatedly emphasized the importance of fintech innovation, responsible fiscal policy, and encouraging households to shift their savings into productive investments as the country works to overcome deflation.
Speaking at the Tokyo Stock Exchange’s New Year opening ceremony, Katayama highlighted the role digital assets could play in portfolio diversification, pointing to the growing popularity of exchange-traded funds (ETFs) in the United States.
She also pledged full government support for exchanges seeking to provide the public with secure access to digital assets.
Katayama’s remarks align with ongoing regulatory reforms led by Japan’s Financial Services Agency (FSA), which plans to reclassify digital assets under the Financial Instruments and Exchange Act (FIEA) by 2026.
Officials expect the changes to enhance transparency, foster institutional participation, and promote broader economic growth through digital finance.
Together, these moves signal Japan’s ambition to position itself as a digital finance hub.
By placing digital assets alongside traditional investments such as stocks, the reforms could attract foreign capital, boost market liquidity, and help shift Japan away from its long-standing reliance on conservative savings.
Katayama expressed strong support for integrating digital assets with stock exchanges and traditional institutions, including allowing banks and asset managers to treat cryptocurrencies similarly to stocks and bonds.
