Japan Finance Minister Says Crypto Can Be a Part of Diversified Portfolio – Is Strategic BTC Reserve Coming?

According to Bloomberg, Katsunobu Kato, Japan’s finance minister, is pushing for an appropriate crypto environment, calling for crypto to be a part of diversified investments.

Speaking at the digital assets forum WebX2025 in Tokyo on Monday, Minister Kato said that crypto assets belong to diversified portfolios.

Finance Minister Highlights Proper Framework Could Mitigate Crypto Risks

Minister Kato said that crypto assets have risks surrounding volatility; however, building an appropriate investment environment could help mitigate the risks.

“They could be part of diversified investments,” he added.

Additionally, he said that the ministry will focus on creating a trading environment for crypto, making sure that innovation isn’t halted due to excessive regulation.

In a post on X, André Dragosch, European Head of Research at Bitwise, questioned whether Japan’s pivot to crypto regulation would allow for a nation’s strategic Bitcoin reserve.

Recently, reports confirmed that Eric Trump will be visiting Japan in September, in a move to expand his family’s Web3 venture. The US President’s son is expected to attend Japanese largest BTC holder Metaplanet’s shareholder meeting.

Japan Keeps Up Pace in Digital Asset Regulations

The nation’s regulator Financial Services Agency (FSA), approved the issuance of the first yen-denominated stablecoin last week. Tokyo-based fintech company JPYC is expected to spearhead the launch.

“Yen stablecoins can streamline cross-border settlement, attract institutional players seeking efficiency, and even support liquidity for government bonds as collateral,” Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, told Cryptonews.

Further, realised gains on crypto assets are currently taxed up to 55% in Japan. However, moving to a separate taxation bracket would lower that level to 20%.

The Liberal Democratic Party (LDP), the Japanese ruling party, has also pledged some important crypto reforms, including introducing equities-style insider trading rules for digital assets that would prohibit malicious actors from profiting from insider trading information.

WebX2025, held on August 25–26 in Tokyo, saw Japan’s Prime Minister Shigeru Ishiba, Finance Minister Katsunobu Kato, and Tokyo Governor’s presence. The event also witnessed industry leaders, including Changpeng CZ Zhao, Justin Sun, Mike Novogratz of Galaxy, and Arthur Hayes of Maelstrom, among others.

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