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Japan’s Finance Minister Indicates Cryptocurrency May Fit into a Diversified Investment Portfolio – Is a Strategic Bitcoin Reserve on the Horizon?
As reported by Bloomberg, Katsunobu Kato, the finance minister of Japan, is advocating for a suitable cryptocurrency environment, emphasizing the inclusion of crypto in diversified investment strategies.
During his address at the digital assets forum WebX2025 in Tokyo on Monday, Minister Kato stated that crypto assets should be integrated into diversified portfolios.
Finance Minister Emphasizes Proper Framework to Reduce Crypto Risks
Minister Kato acknowledged the risks associated with the volatility of crypto assets; however, he suggested that establishing a suitable investment environment could alleviate these risks.
“They could be part of diversified investments,” he remarked.
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
(@Andre_Dragosch) August 25, 2025Moreover, he indicated that the ministry will prioritize the development of a trading environment for cryptocurrencies, ensuring that innovation is not stifled by excessive regulation.
In a post on X, André Dragosch, the European Head of Research at Bitwise, raised the question of whether Japan’s shift towards crypto regulation would facilitate the establishment of a national strategic Bitcoin reserve.
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Recently, it was reported that Eric Trump is set to visit Japan in September to further his family’s Web3 initiative. The son of the US President is anticipated to participate in the shareholder meeting of Metaplanet, Japan’s largest BTC holder.
Japan Advances in Digital Asset Regulations
The country’s regulatory body, the Financial Services Agency (FSA), approved the launch of the first yen-denominated stablecoin last week. The Tokyo-based fintech firm JPYC is expected to lead this initiative.
“Yen stablecoins can facilitate cross-border settlements, attract institutional investors seeking efficiency, and even enhance liquidity for government bonds as collateral,” stated Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, in an interview with Cryptonews.
Additionally, realized gains on crypto assets are currently taxed at rates up to 55% in Japan. However, transitioning to a separate tax bracket could reduce this rate to 20%.
The Liberal Democratic Party (LDP), Japan’s ruling party, has also committed to significant crypto reforms, including the introduction of equities-style insider trading regulations for digital assets, aimed at preventing malicious actors from benefiting from insider trading information.
WebX2025, which took place on August 25–26 in Tokyo, featured the presence of Japan’s Prime Minister Shigeru Ishiba, Finance Minister Katsunobu Kato, and the Tokyo Governor. The event also showcased industry leaders such as Changpeng CZ Zhao, Justin Sun, Mike Novogratz of Galaxy, and Arthur Hayes of Maelstrom, among others.
The post Japan Finance Minister Says Crypto Can Be a Part of Diversified Portfolio – Is Strategic BTC Reserve Coming? appeared first on Cryptonews.
