Japan Expands Financial Reform Plan With Clear Support for Digital Asset Trading

• Japan plans to integrate digital assets into traditional markets by using regulated exchanges as public access points nationwide.

• The government has marked 2026 as a digital year while backing exchange upgrades and market technology.

• Regulators have advanced crypto reform through bank access, stablecoin approval, and lower tax plans nationwide impact.

Japan’s government has signaled a clearer shift toward integrating digital assets into its traditional financial system. The message came during a New Year address at the Tokyo Stock Exchange. The focus stayed on regulated markets and steady reform. The approach reflects Japan’s preference for structure and oversight.

Japan’s finance minister backs crypto integration across stock exchanges: report https://t.co/LZIY7ei1qu

— The Block (@TheBlock__) January 5, 2026

Exchanges Seen as Gateways to Digital Assets

The finance minister emphasized the role of stock and commodity exchanges. These platforms can help the public access digital and blockchain-based assets. Regulated exchanges already hold public trust. As a result, they can act as bridges between traditional finance and new asset classes.

The address also referenced developments in the United States. There, crypto-linked exchange traded products attract investors. Many use them to manage inflation risk. This example suggests similar products could appeal to Japanese investors. However, Japan still lacks domestic crypto exchange traded funds. Local traders cannot access them yet.

2026 Framed as a Digital Focus Year

The government labeled 2026 as a digital year for Japan’s markets. Support will flow to exchanges adopting modern trading technology. These systems will support digital asset trading under clear rules. The aim centers on innovation without weakening investor protection.

The digital push connects to wider economic goals. Japan continues to face deflation pressures. The government views this period as a chance to address those challenges. Fiscal measures and growth-focused investments remain part of the plan. Digital finance forms one pillar of that broader strategy.

Financial Reforms Support Crypto Expansion

Policy changes over the past year support the new direction. Regulators discussed allowing banks to hold and trade crypto assets. These assets would receive treatment similar to stocks or bonds. Such a move could bring crypto deeper into traditional finance.

Authorities also approved Japan’s first yen-pegged stablecoin. The decision marked progress toward regulated digital payments. It also showed readiness to support stable onchain financial tools. Stablecoins may play a role in future settlement systems.

In November, regulators finalized another key reform. They decided to reclassify 105 major cryptocurrencies as financial products. This group includes bitcoin and ether. The change places these assets under existing financial laws. As a result, institutions may use them more widely.

Tax Changes Remain Under Review

Tax policy remains a major issue for the crypto sector. Japan currently applies high taxes on crypto gains. Authorities continue to seek a reduction in those rates. The proposal aims to lower the maximum rate from 55% to 20%.

Supporters believe lower taxes could boost participation. They also expect improved market confidence. Combined with regulatory clarity, tax reform could shape future growth.

Japan’s recent steps show a cautious but steady approach. The government continues to balance innovation with regulation. Digital assets now sit closer to the center of its financial strategy.