Japan’s Finance Minister: Crypto Assets Can Be Part of Diversified Investments

Tokyo, Japan – Japan’s Finance Minister Katsunobu Kato has stated that crypto assets can play a role in diversified investment portfolios, highlighting the government’s commitment to creating a balanced trading environment.

Key Points from Kato’s Statement

• As more people adopt crypto assets, Japan will work toward building an appropriate trading and investment environment.
• Crypto assets are highly volatile, but with a suitable framework, they can be part of diversified investments.
• The government is working to ensure innovation is not halted by excessive regulation while maintaining market stability.

Regulatory and Taxation Developments

• The ruling Liberal Democratic Party (LDP) has proposed stricter insider trading controls and a separate taxation framework for crypto assets as part of its recent election manifesto.
• Currently, realized gains on crypto assets are taxed at rates up to 55% in Japan. Moving crypto to a separate taxation bracket could potentially lower these rates.

These steps reflect Japan’s efforts to balance investor protection, innovation, and market growth while recognizing the growing importance of digital assets in modern finance.