Japan's cryptocurrency policy takes a major turn, Finance Minister Kato Katsunobu: Allowing virtual assets for diversified investment, creating a friendly environment

The Japanese Minister of Finance publicly supports cryptocurrency assets, clarifying the timeline for regulatory transfer and tax reforms, presenting both investment opportunities and risks. (Background: The Financial Services Agency of Japan is reforming cryptocurrency taxes: reducing to 20% and allowing loss carryforward, promoting domestic crypto ETFs and yen stablecoins.) (Additional background: Japanese financial giant SBI plans to establish a tokenization platform for equity, laying out a full-chain ecosystem for stocks, bonds, and ETFs.) The Japanese Minister of Finance, Kato Katsunobu, stated today (25) at a press conference: "We will create a suitable environment for cryptocurrency assets, allowing them to be part of a diversified investment portfolio." With the recent release of many cryptocurrency reform announcements, this statement confirms that the Japanese government is shifting its attitude towards cryptocurrency assets from conservative to actively regulated, also setting the direction for subsequent regulatory and tax reforms. Regulatory and tax reform timeline According to CoinDesk Japan, the Financial Services Agency's working group will complete its reform report by 2025 and propose it at the regular Diet session in 2026. The core of the reform is to transfer cryptocurrency assets from (the Fund Settlement Act) to (the Financial Instruments and Exchange Act). This move means that cryptocurrency assets will be treated like investment products, subject to stricter disclosure and investor protection mechanisms. This wave of legislative amendments will also bring electronic payment methods and service intermediaries under jurisdiction. In terms of self-regulation, the Japan Virtual Currency Exchange Association (JVCEA) has launched systems such as a green list and IEO review, which, if members meet internal control standards, could shorten the listing process for new coins (FSA). The tax system is the variable that the market is most concerned about. The current maximum tax rate for comprehensive taxation reaches 55%, and the Financial Services Agency is considering adopting a separate tax rate of 20%, which has received multi-party support. If successfully passed, investors' net returns can be expected to significantly improve, also laying the foundation for Japan to promote Bitcoin ETFs. Investment opportunities and challenges Reports mention that Japan's goal of lowering taxes and clarifying legal positioning opens doors for institutions and retail investors, as cases of Japanese companies holding Bitcoin increase, along with new practices of listing cryptocurrency assets as inventory. Once market depth improves, liquidity is expected to rapidly expand following the U.S. spot ETF model. However, the volatility of cryptocurrency assets is high, and regulations are still in a transitional period. Auditing firms are strengthening private key management and internal control audits to reduce unauthorized access risks. Investors need to pay attention to the details announced by the Financial Services Agency and JVCEA and properly diversify risks. Overall, Japan is striving for a cryptocurrency financial landscape through a combination of "clear regulation + tax reduction." For Taiwanese investors, this is both a window for early layout and a test of risk tolerance. Related reports Ripple stablecoin enters Japan! Ripple collaborates with SBI to launch $RLUSD in Q1 next year: Targeting trillion-dollar market growth dividends Japanese builder LibWork announces it will buy 500 million yen worth of Bitcoin, launching 3D printed house NFT tokenization WebX 2025: Japan's Web3 grand event opens in Tokyo in August. "Japan's cryptocurrency policy takes a major turn, Finance Minister Kato Katsunobu: Allowing virtual assets for diversified investment, creating a friendly environment." This article was first published by BlockTempo (the most influential blockchain news media).