Japan Finance Minister Urges Crypto Inclusion in Diversified Portfolios as Strategic Asset

Japan's top financial official just dropped a bombshell recommendation that's shaking traditional portfolio strategies.

Strategic Allocation Shift

The Finance Minister explicitly called for digital assets to be integrated into diversified investment portfolios—a move that signals mainstream acceptance at the highest governmental levels. This isn't just tolerance; it's active endorsement from one of the world's largest economies.

Regulatory Winds Changing

Japan's Financial Services Agency appears to be aligning with this progressive stance, potentially fast-tracking crypto adoption frameworks that other nations have been slow to implement. The timing suggests coordinated policy movement rather than isolated commentary.

Portfolio Revolution—Or Just Political Posturing?

While traditional finance veterans might scoff at allocating to 'volatile digital assets,' the minister's push reflects growing institutional recognition that ignoring crypto means ignoring the fastest-growing asset class of the decade—even if some still see it as politicians chasing relevance by endorsing whatever's trending.

TLDR

• Japan’s finance minister says crypto can serve as diversification in portfolios.

• The LDP aims to move crypto gains to a flat 20% tax regime.

• New rules may curb insider trading related to token listings and updates.

• Metaplanet joins FTSE Japan Index with nearly $2B in Bitcoin holdings.

Japan finance minister, Katsunobu Kato, has stated that cryptocurrencies can play a role in diversified investment portfolios. According to a Bloomberg report on Monday, Kato noted that while crypto assets remain volatile, they can still be considered within a proper framework of risk management and regulation.

He added that the ministry WOULD work on building a trading environment that supports safe participation in the asset class. The comments reflect a continued shift in Japan toward adopting digital assets within traditional financial structures.

LDP’s Push for Crypto Tax and Market Reform

The Liberal Democratic Party (LDP), Japan’s ruling party, has been working on several reforms aimed at making the country’s crypto environment more attractive.

Among the most notable proposals is moving cryptocurrency gains to a flat tax rate of about 20%. Currently, individual crypto gains are taxed progressively at rates as high as 55%.

Such a change could reduce the burden on retail investors and encourage broader participation in the market. In addition, the LDP is also preparing to implement equities-style insider trading rules for crypto. These rules would prevent market participants from profiting through undisclosed token listing information or upcoming protocol updates.

Japan Regulatory Approach and Web3 Goals

Following a series of major exchange hacks, Japan emerged as one of the most tightly regulated crypto markets.

Authorities imposed strict rules to protect users and restore confidence in the sector. Over time, however, the government began to pivot toward supporting Web3 initiatives.

Former Prime Minister Fumio Kishida emphasized the role of blockchain in retaining technological talent and ensuring Japan remained competitive in the global digital economy. This stance has influenced ongoing policies aimed at combining regulatory safeguards with innovation.

Metaplanet Expands Bitcoin Holdings and Joins FTSE

Meanwhile, Metaplanet, Japan’s largest corporate Bitcoin holder, has taken another step forward in its integration with traditional markets. The company was recently added to the FTSE Japan Index, which tracks large and mid-cap equities in the country.

CEO Simon Gerovich also confirmed that Metaplanet acquired an additional $11.7 million worth of Bitcoin, lifting its total holdings close to $2 billion. This reinforces the company’s role as one of the leading institutional supporters of bitcoin in Asia.

Metaplanet’s inclusion in the FTSE Japan Index represents a milestone for both crypto adoption and corporate recognition of digital assets in mainstream investment circles.