Japanese Finance Minister Katsunobu Kato stated on August 25 in Tokyo that cryptocurrencies could become a valid tool for portfolio diversification, provided that a proper investment framework is in place. Speaking at a crypto-focused event, Kato emphasized the need to balance investor protection with innovation, warning that excessive regulation could hinder growth.
The ruling Liberal Democratic Party (LDP) has already included crypto-related measures in its 2025 Upper House election pledges, such as insider trading rules and separate taxation policies to ensure fair and transparent markets. Kato also referred to ongoing discussions on revising crypto taxation in the 2025 tax reform package, with Japan’s Financial Services Agency set to draft proposals.
His remarks underline Japan’s strategy to integrate digital assets into broader wealth-building policies, strengthening its role as a financial hub in Asia while other countries remain cautious.
JAPAN'S FINANCE MINISTER: Crypto assets can be part of diversified investments.
SBR in Japan incoming? 🇯🇵 pic.twitter.com/V41Xd4hEPe
— André Dragosch, PhD⚡ (@Andre_Dragosch) August 25, 2025