Japan’s Finance Minister Calls Crypto As a Diversified Portfolios

Japan is signaling a bold shift in its stance toward digital assets. At the WebX2025 conference in Tokyo, Finance Minister Katsunobu Kato declared that cryptocurrencies should be considered part of a diversified investment portfolio, sparking speculation about whether the nation could eventually build a strategic Bitcoin reserve.

Speaking at the digital asset forum on Monday, Minister Kato acknowledged the risks of volatility but emphasized that the proper regulatory framework could help mitigate them. “They could be part of diversified investments.”

Kato also added that his ministry is committed to creating a trading environment that fosters innovation without stifling growth through excessive regulation.

The statement marks one of the most supportive comments yet from a top Japanese policymaker and places crypto within the broader context of legitimate asset allocation—a significant step for a G7 economy.

Rising Speculation Over a Strategic Bitcoin Reserve

The remarks immediately set off debate within the global crypto community. André Dragosch, European Head of Research at Bitwise, posted on X asking whether Japan’s pivot could open the door for a formal national Bitcoin reserve.

Such a move would make Japan one of the first major economies to strategically hold BTC as part of its financial arsenal.

A recent report confirmed that Eric Trump is expected to visit Japan in September to expand the Trump family’s Web3 ventures.

Eric is also expected to attend the shareholders meeting of Metaplanet, which is considered to be Japan's largest BTC holder.

Regulatory Momentum Builds in Japan

Recent policy developments show Japan is determined to keep pace with the digital asset revolution.

Just last week, the country’s Financial Services Agency (FSA) approved the issuance of the nation’s first yen-denominated stablecoin, to be spearheaded by fintech company JPYC.

Analysts suggest such stablecoins could streamline international settlements, attract institutional capital, and even provide liquidity for government bond markets.

Meanwhile, Japan’s ruling Liberal Democratic Party (LDP) is advancing reforms that would bring crypto closer to traditional financial standards.

These include introducing insider trading rules for digital assets, a move aimed at curbing manipulation and boosting investor confidence.

Currently, crypto gains in Japan can be taxed as high as 55% under existing brackets. Policymakers are considering a shift to a flat 20% bracket, in line with equities taxation, which could unlock new levels of adoption among retail and institutional investors alike.

WebX2025: Global Leaders Converge in Tokyo

Japan’s growing crypto ambitions were on full display at WebX2025, held August 25–26 in Tokyo.

The event featured appearances from Prime Minister Shigeru Ishiba, Finance Minister Kato, and Tokyo’s Governor, alongside international industry leaders such as Changpeng “CZ” Zhao, Justin Sun, Mike Novogratz of Galaxy Digital, and Arthur Hayes of Maelstrom.

With political leaders and major industry figures aligned on advancing digital assets, Japan appears to be positioning itself as a frontrunner in the global crypto economy—raising the question of whether a strategic Bitcoin reserve could be its next big move.