Japan’s Finance Minister has acknowledged that crypto assets can play a role in building balanced investment portfolios.
Speaking at the WebX 2025 Conference held in Tokyo, Katsunobu Kato noted that while digital assets are prone to extreme price swings, the creation of a reliable and safe investment environment could make them a viable choice for diversification.
Kato said he intends to concentrate on improving the trading environment in Japan so that investors have better access and protection when engaging with these assets.
His remarks come at a time when Japan is grappling with tough economic conditions. The nation’s public debt rose to 234.9% of GDP as of March, placing it among the most indebted economies globally.
The heavy debt load has pushed the government into relying on policies such as currency devaluation and ultra-low interest rates, strategies often described by economists as “financial repression.” These measures reduce the returns on safe, traditional investments like bank deposits and bonds, pushing people to look elsewhere for growth.
The weakening of the yen has only made matters more pressing, as it raises the cost of imports and reduces the purchasing power of money held in savings. Against this backdrop, crypto assets appear more appealing as a way to protect and diversify investments.
The minister’s supportive stance aligns with recent calls from the Financial Services Agency (FSA), Japan’s financial regulator, to reform the tax system for digital assets. At present, crypto earnings are taxed as miscellaneous income, with rates ranging anywhere from 15% to 56% depending on an individual’s income bracket.
The FSA has suggested moving to a flat rate of 20.315%, similar to how stock gains are treated. The change would simplify taxation and potentially encourage more participation in the crypto market.
Meanwhile, crypto is gaining ground in Japan’s corporate sector. Bitcoin (BTC) treasury firm Metaplanet was recently moved to a mid-cap stock in FTSE Russell’s September review. This move qualifies its shares for inclusion in the widely followed FTSE Japan Index.
Japan’s financial giants are also exploring blockchain technology on a larger scale. SBI Group, one of the country’s biggest financial players, has partnered with Chainlink to create blockchain-based tools for Asian institutions. In addition, SBI recently signed deals with Circle, Ripple, and Startale to further expand blockchain use cases.
Reports also suggest that the FSA may approve yen-backed stablecoins later this year, underscoring the country’s shift toward integrating digital assets into its financial system.
Such endorsement coming from the finance minister suggests that leading economies around the world are coming around on matters related to digital assets. Crypto industry players like MARA Holdings, Inc. (NASDAQ: MARA) will see these signals as positive steps towards crypto becoming more integrated in global financial markets.
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