Japan Aligns Crypto Regulation With Securities Markets

Japan appears to be moving to bring cryptocurrencies deeper into its traditional market rulebook, signaling that regulators want digital assets handled through established exchanges and securities-style oversight rather than a parallel system.

The direction was underscored on Monday by Finance Minister and Financial Services Minister Satsuki Katayama, who publicly backed traditional securities exchanges and market infrastructure as the primary gateway for blockchain-based assets. 

Speaking at the Tokyo Stock Exchange’s New Year opening ceremony, Katayama framed 2026 as Japan’s first year of full-scale digitalization. Her remarks echoed a broader regulatory shift that has been steadily aligning crypto with traditional capital markets. 

“To ensure citizens benefit from digital and blockchain-based assets, the role of exchanges and market infrastructure will be essential,” Katayama said during the ceremony, in remarks delivered in Japanese and machine-translated into English, pledging to support stock exchanges in “advancing cutting-edge, accessible, and efficient markets.”

Katayama’s comments come as Japan continues to tighten how crypto is accessed domestically, a process that includes stricter registration rules, enforcement against unregistered platforms and emphasis on regulated rails. 

From payments law to securities regulation

Katayama’s remarks build on regulatory groundwork already underway. On Dec. 10, 2025, Japan’s Financial Services Agency outlined plans to move crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act, treating crypto assets as financial products rather than payment tools. 

Under the framework, crypto issuance and trading would fall under securities-style regulations, including stronger disclosure mandates, insider trading prohibitions and expanded enforcement against unregistered overseas platforms. 

Tax policy is also moving in the same direction. On Dec. 2, the Japanese government and ruling coalition backed plans to introduce a flat 20% tax on crypto profits.

This aligns crypto assets with stocks and investment funds and replaces a system that could scale tax as high as 55%. The reform is expected to be embedded within broader securities law amendments.

The legal and fiscal changes suggest a deliberate effort to standardize crypto’s integration within the existing Japanese financial system rather than regulate it separately. 

Related: Metaplanet has key advantage over US-based Bitcoin treasuries: Analyst

Exchange-led access takes shape

The policy direction has already translated into enforcement. On Feb. 7, 2025, regulators asked Apple and Google to remove apps linked to unregistered crypto exchanges, including Bybit, MEXC and KuCoin.

This reinforced that access to Japanese users would be limited to platforms compliant with local regulations. 

The regulatory pressure has already reshaped market participation. On Dec. 23, Bybit said it would begin phasing out services for Japanese residents in 2026, citing regulatory requirements and registration rules. 

While other players are moving toward the exit, Japan’s regulators have backed bank-led stablecoin initiatives and explored frameworks that would allow regulated institutions to play a bigger role in crypto asset markets. 

Magazine: Bitcoin treasury crackdown, Asia embraces stablecoins: Asia Express 2025