Catenaa, Thursday, August 28, 2025- Japan’s Finance Minister Katsunobu Kato emphasized Monday that cryptocurrencies can form part of diversified investment portfolios.
Analysts see this as signaling a broader government push to balance innovation with risk management.
Speaking at the WebX2025 digital assets forum in Tokyo, Minister Kato acknowledged crypto’s volatility but highlighted the need for a structured investment environment to mitigate potential risks.
He stressed that regulatory measures should avoid stifling innovation while providing protections for investors.
The announcement comes as Japan continues advancing digital asset regulations. Last week, the Financial Services Agency approved the country’s first yen-denominated stablecoin, to be launched by Tokyo-based fintech JPYC.
The new stablecoin is expected to streamline cross-border payments, attract institutional investors, and enhance liquidity for government bond collateral.
Kato’s comments follow growing speculation that Japan could explore strategic corporate Bitcoin reserves, as European research head André Dragosch suggested in response to the minister’s statements.
Industry observers noted that Eric Trump is slated to visit Japan in September to attend Metaplanet’s shareholder meeting, linking US Web3 ventures to Japan’s largest Bitcoin holdings.
Current taxation on realized crypto gains in Japan reaches 55%, but proposals are under consideration to reduce the rate to 20% by creating a separate taxation bracket.
The ruling Liberal Democratic Party has also pledged crypto reforms, including equities-style insider trading regulations aimed at curbing manipulative practices in digital asset markets.
