Japan’s Finance Minister Endorses Cryptocurrencies as Part of Diversified Portfolios

Japan’s Finance Minister Katsunobu Kato has acknowledged the role of cryptocurrencies in diversified investment strategies, signaling the country’s growing embrace of digital assets.

Speaking at the Web3 Conference WebX 2025 in Tokyo, Kato noted that while cryptocurrencies remain highly volatile, they can serve as a valuable tool for portfolio diversification if backed by a proper investment framework.

“While crypto assets carry the risk of high volatility, by establishing a proper investment environment, they can become an option for diversified investment,” Kato said.

Japan Moves Toward a Friendlier Crypto Environment

Kato’s comments come as Japan’s Financial Services Agency (FSA) pushes for major tax reforms on crypto gains. Currently, profits from cryptocurrency trading are classified as miscellaneous income, leading to steep tax rates ranging from 15% to 56% depending on individual brackets.

The FSA has proposed reclassifying crypto gains under separate taxation—similar to stocks—so they would be taxed at a flat rate of 20.315%. This move aims to make Japan a more competitive hub for digital asset investors and institutions.

Metaplanet Upgraded to FTSE Japan Index

Meanwhile, Japanese Bitcoin treasury company Metaplanet continues to make waves. The firm has been upgraded from a small-cap to a mid-cap stock in FTSE Russell’s September 2025 Semi-Annual Review, earning a spot in the flagship FTSE Japan Index.

This marks another milestone in Japan’s growing integration of crypto into its mainstream economy.

Financial Giants Expand Blockchain Partnerships

Japan’s financial powerhouses are also accelerating blockchain adoption. SBI Group recently partnered with Chainlink (LINK) to develop new blockchain-based solutions for Asia’s financial institutions.

In addition, SBI has struck new deals with Circle (issuer of USD Coin), Ripple (developer of XRP), and Web3 firm Startale. Reports also suggest the FSA is preparing to approve yen-backed stablecoins as early as this fall, further expanding Japan’s role in the global digital asset market.