Japan’s Finance Minister Katsunobu Kato recognized that cryptocurrencies deserve a place in diversified investment portfolios.
According to a Monday Bloomberg Japan report, Kato acknowledged the role of cryptocurrencies in a diversified investment portfolio during a speech. He was addressing the public from the stage during his keynote at Web3 Conference WebX 2025 in Tokyo.
“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’s minister of finance added that, considering the growing user base, he intends to focus on creating a sound trading environment for cryptocurrencies.
Related: Bitcoin treasury firm Metaplanet graduates to FTSE Japan and All-World indexes
Japan increases crypto-friendliness
The news followed Japan’s Financial Services Agency (FSA) requesting that the government revise the taxation of cryptocurrencies, proposing a flat tax rate. Crypto gains are currently classified as miscellaneous income in Japan, leading to a tax rate between 15% and 56% depending on the bracket of the individual.
The FSA requested to reclassify crypto for separate taxation, much like stocks, leading to gains being taxed at a flat rate of about 20.315%. The move came as cryptocurrency is increasingly affirming its place in the local economy.
Related: Japan’s crypto tax overhaul: What investors should know in 2025
Japan bets on crypto
According to Monday reports, local Bitcoin (BTC) treasury company Metaplanet has been upgraded from a small-cap to a mid-cap stock in index provider FTSE Russell’s September 2025 Semi-Annual Review. This leads to the company’s stock being listed for inclusion in the flagship FTSE Japan Index.
The news came as Japanese finance giants are set to adopt blockchain technology. Recently, Japanese finance conglomerate SBI Group partnered with the blockchain oracle platform Chainlink (LINK) to create crypto tools for Asia’s financial institutions.
Also this month, SBI signed new blockchain partnerships with USD Coin (USDC) issuer Circle, XRP developer Ripple and the Web3 company Startale. Recent reports also indicate that the FSA is preparing to approve the issuance of Japanese yen-denominated stablecoins as early as this fall.
Magazine: Stablecoins in Japan and China, India mulls crypto tax changes: Asia Express
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