The Japanese Finance Minister recently announced a major move—supporting the establishment of cryptocurrency trading services within securities exchanges and designating 2026 as Japan's "Digital Year." What does this mean? The Japanese government is seriously promoting the integration of cryptocurrencies into the mainstream financial system.

Earlier, at the New Year event at the Tokyo Stock Exchange, the minister issued several significant policy signals. First is the issue of exchange integration. He explicitly supported incorporating cryptocurrency trading into the formal frameworks of securities exchanges and commodity exchanges, with a straightforward reason—regulated platforms are crucial for expanding cryptocurrency adoption.

Looking at ETFs, he pointed to the success of US spot cryptocurrency ETFs, believing that ETFs can become a powerful tool for the public to combat inflation. Therefore, Japan is also planning a similar investment mechanism to allow ordinary people to participate.

The most eye-catching aspect might be the tax reform. Currently, the highest tax rate on cryptocurrency profits is 55%, but the government plans to adjust it to a 20% separate taxation, aligning with stock tax rates. This is a tangible benefit for investors.

Additionally, the government plans to reclassify about 105 mainstream cryptocurrencies to further clarify their legal status. Overall, these series of actions from Japan send a clear signal—2026 will be a key year for the normalization and mainstreaming of cryptocurrencies in Japan.