Cryptocurrency holdings in Japan reached a historic ¥5 trillion ($33.16 billion) as of July this year, driven by investors seeking higher returns amid low savings yields and a rising cost of living that outpaces wage growth.
The market's rapid acceleration is fueled by a shift toward digital assets, with the number of securities accounts in Japan tripling that of crypto accounts, representing a big opportunity for expansion if even a fraction of traditional investors adopt cryptocurrencies, as highlighted by Coincheck executive Satoshi Hasuo.
Exchanges are leading this charge through strategic partnerships; for instance, Coincheck's integration with e-commerce platform Mercari has already boosted new account registrations by offering crypto trading within a familiar app.
Regulatory reforms from Japan's Financial Services Agency (FSA) are anticipated in 2026 or 2027, aiming to reduce taxes for new investors and increase leverage limits for experienced traders to make crypto more attractive.
In preparation, firms like SBI VC Trade plan to raise leverage limits from the current 2x to 5x or even 10x, explore lending services with stablecoins such as USDC, and develop crypto ETFs to attract users preferring conventional financial products.
Additionally, the FSA intends to allow banks to offer crypto services directly, leveraging institutional trust to further stimulate market growth and adoption.
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