Japan’s Minister of Finance Satsuki Katayama has signaled strong backing for the expansion of digital assets within traditional financial frameworks, outlining 2026 as a decisive year for the country’s digital and fiscal transformation. Her remarks came during the New Year’s address at the Tokyo Stock Exchange (TSE) on January 5, as reported by CoinPost.
Minister supports integrating crypto through exchanges
Katayama said that stock and commodity exchanges serve a “crucial” role in giving the public greater access to digital and blockchain-based assets. She added that as Japan advances its digital economy, these exchanges would help bridge traditional markets with emerging asset classes, allowing for broader engagement with technologies such as fintech, tokenization, and blockchain infrastructure.
“In the U.S., ETFs (exchange-traded funds) are becoming popular as a means of hedging against inflation for the public,” Katayama said.
She said that Japan might see similar changes, which would show that people are becoming more interested in regulated crypto products that are set up like regular securities. In the beginning of 2026, Japan does not host any locally issued crypto ETFs, but officials have expressed openness to exploring this market.
Designating 2026 as Japan’s ‘digital year’
In her address, Katayama described 2026 as the ‘first year of digitalization,’ pledging “full support” for domestic stock and commodity exchanges in implementing advanced technology. She referred to global market trends favoring digital integration and noted that Japan must act decisively to remain competitive.
The Finance Minister also used the occasion to highlight broader economic goals, calling this year a “turning point” for addressing deep‑rooted structural issues such as deflation. “This year is a turning point,” she said, emphasizing the necessity of responsible fiscal policy and concentrated investment in growth sectors that could reshape the Japanese economy.
With reference to the Takaichi administration, Japan’s first led by both a female Prime Minister and a female Finance Minister, Katayama added that “the glass ceiling (jinx) has already been broken in the world of politics.” She then expressed optimism over financial markets, saying she expected “the stock market to break through the ceiling and reach a new record high this year.”
Focus on growth through digital reform
Katayama pointed out Japan’s need to shift from savings to investment, a policy objective shared by other developed economies. She said, “There is still room for growth in efforts to shift from savings to investment,” reiterating the aim of establishing an asset management-based nation. The emphasis aligns with government efforts to stimulate investor participation while modernizing the financial system.
Parallel to Katayama’s remarks, Japan has introduced measures to reinforce its ambition of becoming a regional crypto innovation hub. The Financial Services Agency (FSA) started looking over rules in October 2025 that would let banks buy and sell cryptocurrencies. This made things clearer for banks and other financial institutions.
That same month, authorities approved JPYC, the country’s first yen‑pegged stablecoin, to facilitate wider adoption of digital payments. In November 2025, the FSA completed plans to reclassify 105 major cryptocurrencies, including bitcoin and ether, as financial products under existing law. The revision could strengthen institutional use and open the door for regulated financial firms to expand their digital portfolios.
The government is also discussing a tax reduction on crypto investments, potentially lowering the maximum rate from 55 percent to 20 percent, according to prior reports from HodlFM.
Building confidence in digital finance
Katayama’s statements reinforce a wider policy shift toward integrating digital finance with Japan’s economic growth strategy. Although she stopped short of announcing a specific timeline for crypto ETF approval, her endorsement of exchange-based adoption indicates the government’s intent to position the country as a leading player in regulated digital asset markets.
The TSE event marked the first trading day of the year following the New Year’s holiday. Katayama’s call to modernize financial infrastructure and embrace blockchain technologies resonated with investors eager for innovation in Japan’s capital markets.
As the “first year of digitalization” unfolds, Japan is expected to leverage existing exchange frameworks, fintech partnerships, and progressive regulation to bridge traditional sectors with the expanding crypto economy.
Gunel Ismayilova
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