Japanese Finance Minister Calls for Balanced Development of Crypto Market
Date: 2025-08-26 Author: Henry Casey Categories: IN WORLD
At the Web3 WebX 2025 conference in Tokyo, Finance Minister Katsunobu Kato said that cryptocurrencies can take a place in investment portfolios if a sustainable infrastructure is formed. He emphasized that although digital assets are highly volatile, with proper regulation they can become a reliable tool for investors.
Kato noted that the government seeks to avoid excessive pressure on the industry and intends to adhere to a moderate regulatory course. The political program of the ruling Liberal Democratic Party pays special attention to controlling insider trading and creating a separate tax system for cryptocurrency transactions.
Today, income from transactions with digital assets in Japan is taxed at up to 55%, but the reform proposed by the LDP suggests reducing the rate to 20%. According to Andre Dragos, Head of European Research at Bitwise, this change could significantly increase Japan’s attractiveness to investors.
Institutional Players Gain Strength
Interest in digital assets is growing among major financial institutions in the country. Conglomerate SBI Group has announced a partnership with Chainlink to promote blockchain, tokenization, and the use of digital assets in both the Japanese market and the wider Asia-Pacific region.
According to a survey conducted by SBI Digital Asset Holdings among more than 50 financial institutions, 76% of respondents said they plan to invest in tokenized securities. Participants noted the benefits of such products - reduced costs and faster settlements, but the main obstacle was the lack of institutional-grade infrastructure.
As part of the partnership, Chainlink and SBI will focus on developing solutions for tokenized funds, RWA products, and stablecoins, as well as simplifying cross-border settlements.
SBI recently entered into agreements with Circle, Ripple Labs, and Web3 company Startale. In cooperation with the latter, it is planned to create a trading platform for tokenized assets that will allow transactions to be conducted around the clock, speed up settlements, and provide the possibility of partial ownership. Joint projects with Circle and Ripple are aimed at promoting USDC and RLUSD stablecoins on the Japanese market.
In addition, this fall, the Financial Services Agency of Japan may approve the first stablecoin backed by the yen. The initiative to issue it was previously put forward by Sumitomo Mitsui Financial Group, which controls the country's second-largest bank SMBC.
Thus, Japan is taking confident steps towards forming a balanced ecosystem for digital assets, combining tax reforms, government support, and active participation of the private sector.
