Japan moves to regulate crypto into traditional financial markets

This approach follows how traditional financial products are regulated.

Japan is moving away from treating cryptocurrency as a separate financial system and is instead bringing it closer to traditional markets.

Leaders in the country are increasingly highlighting the role of established exchanges and are pushing for securities-style regulation as the main way to manage blockchain-based assets. This shows growing confidence in digital assets, along with a strong effort to regulate them using familiar and trusted market structures.

This shift was highlighted on Monday when Japan’s Finance Minister and Financial Services Minister, Satsuki Katayama, spoke at the Tokyo Stock Exchange’s New Year opening ceremony. Addressing stockbrokers and financial professionals, she described 2026 as Japan’s first full year focused on digitalization. She emphasized that regulated exchanges and existing market infrastructure will play a key role in shaping the future of digital assets in the country.

Katayama said that if citizens are to truly benefit from digital and blockchain-based assets, exchanges and market systems will be essential. In her speech, delivered in Japanese and later translated into English, she promised support for stock exchanges as they develop ways to trade digital assets that are easy to access, efficient, and protected by the same safeguards used in traditional financial markets.

Her comments reflect a broader trend in Japan’s approach to crypto regulation. Authorities have tightened rules for crypto platforms, introducing stricter registration requirements and taking action against services operating without approval. Regulators have stressed the importance of using official, licensed channels such as registered exchanges and clearing systems to protect investors and maintain market stability.

Japan’s approach to stablecoins further highlights this strategy. Regulators have indicated that stablecoins, which are digital tokens linked to real-world currencies like the yen, must operate under clear legal rules before they can be widely used. This approach closely follows how traditional financial products such as money market funds and foreign exchange instruments are regulated.

Recent figures support the move toward stronger regulation. Data from the Japan Virtual and Crypto Assets Exchange Association shows that registered exchanges have experienced steady growth in both trading activity and user accounts over the past year. This suggests that clearer regulations are helping build public trust in the crypto market.

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