Japan’s finance minister said that regulated exchanges are the future of crypto as Japan presses ahead with tax, market, and disclosure reforms.
It looks like Japan is seeking to make cryptocurrencies a bigger part of its normal market laws. Authorities would rather see digital assets traded through established exchanges and watched over like stocks than through a separate system.
Crypto will be treated more like securities than payments
On Monday, Finance Minister and Financial Services Minister Satsuki Katayama made it clear that existing stock exchanges and market infrastructure should be the main means for blockchain-based assets to get into the market.
Katayama said during the Tokyo Stock Exchange’s New Year opening event that 2026 would be Japan’s first year of full-scale digitalisation. Her comments were in line with a bigger trend in regulation that has been slowly bringing crypto closer to traditional capital markets.
Katayama stated during the ceremony, in comments made in Japanese and translated into English by a machine, that exchanges and market infrastructure will be very important to ensure that citizens benefit from digital and blockchain-based assets. He promised to help stock exchanges advance cutting-edge, accessible, and efficient markets.
Katayama’s statements come at a time when Japan is making it harder to access crypto within its borders. This includes stricter registration restrictions, enforcement against unregistered platforms, and a focus on regulated rails.
Katayama’s remarks reinforce the ongoing efforts to establish standards for payments and securities. On December 10, 2025, Japan’s Financial Services Agency indicated that it would move the regulation of cryptocurrencies from the Payment Services Act to the Financial Instruments and Exchange Act. This would mean that crypto assets would be seen as financial goods instead of payment methods.
Under the plan, crypto issuance and trading would be subject to rules similar to those for securities. These rules would include stricter disclosure requirements, bans on insider trading, and more enforcement against unregistered overseas platforms.
Tax reform brings crypto in line with equities
The Japanese government and ruling coalition agreed on December 2 to tax all crypto income at a flat 20% rate.
This puts crypto assets on the same level as equities and investment funds and eliminates a system that may raise taxes to 55%. The change is likely to be part of a larger set of changes to securities law.
The modifications to the law and taxes show that there is a planned effort to make crypto fit into the current Japanese financial system instead of regulating it independently.
Exchange-led access takes shape on the ground
The policy directive has already been implemented. Regulators instructed Apple and Google to remove applications associated with unlicensed cryptocurrency exchanges, including Bybit, MEXC, and KuCoin, on February 7, 2025.
This clarified that only platforms compliant with Japanese laws will be able to access the Japanese population.
Regulatory pressures have already transformed the manner in which individuals engage in the market. Bybit announced on December 23 that it will cease providing services to residents of Japan in 2026 due to registration and regulatory restrictions.