Key Takeaways
What’s driving Japan’s renewed interest in crypto?
Rising investor appetite, discussions on tax cuts for crypto gains, and hopes for easier trading rules have boosted confidence in Japan’s digital asset market.
How big is Japan’s crypto market right now?
Japanese investors’ crypto holdings reached a record ¥5 trillion ($33 billion) in July, with over 5 million users, which is about 4% of the population.
While the U.S. tightened its grip on crypto regulation, Japan charted a different course defined by innovation and rising investor appetite.
From launching new crypto products to expanding leveraged trading, Japanese exchanges and financial firms are seizing the moment amid growing optimism for regulatory relaxation.
Japan’s crypto gains
That said, Japanese investors’ crypto holdings have soared past a record ¥5 trillion ($33 billion) in July. It showed renewed confidence in digital assets despite past exchange hacks in 2014 and 2018.
With discussions underway to ease taxes on crypto gains and loosen trading limits, Japan’s market appeared set for its boldest growth phase yet.
Satoshi Hasuo, Representative Director and Executive Officer of exchange Coincheck, said,
“There are around three times as many people with securities accounts as crypto accounts, so there’s still a considerable opportunity. Next, we have to think about how we’ll win these people over.”
CJ Fong, Asia Pacific GM at GSR, also noted a surge in talks with Japanese exchanges and financial firms to boost digital asset liquidity.
This growing activity signals Japan’s renewed drive to reclaim its spot as a leading crypto hub, fueled by global momentum under President Trump’s pro-crypto stance.
Reiterating the same, Noriyuki Hirosue, CEO of exchange Bitbank, added,
“The Trump administration has spurred the Japanese government and regulators into adopting a friendlier approach to crypto, so Japan doesn’t fall behind.”
Rising crypto adoption in Japan
In fact, a recent report by Chainalysis ranked Japan 19th among the top 20 countries in global crypto adoption this year.
The Japan Financial Services Agency (FSA) continued refining these rule updates, which are expected to be reviewed by parliament and potentially enacted by 2026 or 2027.
Till then, Japan’s crypto revival is accelerating through key partnerships and innovation.
For instance, Coincheck’s partnership with Mercari has brought cryptocurrency to millions of casual users, increasing Mercari’s account base to 3.4 million by mid-2025, accounting for over a quarter of Japan’s total.
Meanwhile, SBI VC Trade is expanding leveraged trading and exploring USDC lending and crypto ETFs, as regulators weigh allowing banks to offer crypto services directly.
This indicates that Japan is poised to launch the world’s largest regulated on-chain equity market in 2026, led by SBI Holdings.
Growth so far
User penetration is expected to increase to 15.26% by 2026. This trend positions Japan as a benchmark for tokenized investing.
Additionally, Japan is integrating blockchain finance with sustainable Bitcoin [BTC] mining. This initiative aims to balance the power grid, transforming cryptocurrency from mere speculation into a tool for energy efficiency and modern finance.
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