Japan Accelerates Cryptocurrency Integration: Finance Minister Declares 2026 the "Digital Year"

Japan's Finance Minister Satsuki Katayama expressed strong support for integrating digital assets into traditional financial systems, emphasizing the role of stock and commodity exchanges in providing broader public access to blockchain-based assets. In her New Year's speech at the Tokyo Stock Exchange, she noted the popularity of cryptocurrency ETFs in the US, where they have become a popular tool for hedging inflation, and suggested similar trends in Japan, where there are currently no domestic crypto-ETFs for local traders.

Katayama declared 2026 the "digital year" and promised full support to exchanges in creating an innovative trading environment using advanced technologies. This aligns with recent reforms in Japan, including the potential permission for banks to trade and hold crypto assets, the approval of the JPYC stablecoin pegged to the yen, and plans to reclassify 105 major cryptocurrencies, such as Bitcoin and Ether, as financial products under existing regulations. Additionally, the tax on cryptocurrencies is planned to be reduced from a maximum of 55% to a fixed 20%, which could open the way for further use in traditional finance.

According to the latest developments, Japan's largest asset managers, such as Nomura and Mitsubishi UFJ, are preparing cryptocurrency investment trusts ahead of anticipated regulatory changes in 2026. Japan's Financial Services Agency (FSA) plans to reclassify crypto assets as securities, which will allow the launch of Bitcoin spot ETFs. This could be a significant step for the Asian market, where Japan holds approximately $1.2 trillion in US Treasury bonds - even a small rotation of these funds into Bitcoin (for example, 1-10%) could significantly impact the BTC price, raising it to $108-188 thousand based on basic calculations.

On social media platforms like X, the news is sparking lively discussion. Users note that tax reforms will unlock a massive influx of retail liquidity from Asia, and Japan's megabanks, such as MUFG, SMBC, and Mizuho, are testing yen-based stablecoins and tokenized deposits for settlements. Some analysts predict a "crazy altcoin season" in 2026, with a focus on tokenization of government bonds and interbank payments.

These steps by Japan signal a global shift toward greater integration of cryptocurrencies into traditional finance, potentially influencing markets in the US and Europe. Taking into account recent record inflows into crypto-ETFs (for example, Bitcoin ETFs updated highs since October) and plans for staking and lending, 2026 could be a turning point for the industry.