From the launch of new products and services in Japan to facilitating leveraged trading bets, crypto exchanges and some financial firms are eagerly seeking to take advantage of the growing investor enthusiasm for digital assets, buoyed by expectations of relaxed regulations. The recent uptick in interest highlights a renewed willingness among Japanese investors to engage in riskier financial ventures, driven by inflation rates outpacing wage increases and overshadowing the caution that followed significant security breaches at exchanges in 2014 and 2018. As of late July, the total value of Japanese investors’ crypto holdings exceeded a staggering 5 trillion yen (approximately $33.16 billion), marking a notable 25% increase from the previous month. However, this figure has slightly decreased to 4.9 trillion yen by the end of September, despite the price of Bitcoin, the leading digital currency, rising by only 15% in yen during the same timeframe. Industry stakeholders are now gearing up for a potential surge in growth, anticipating regulatory reforms that could attract even more retail investors by potentially lowering taxes on crypto gains and relaxing restrictions on leveraged trading and asset securitization.
### SIGNIFICANT POTENTIAL
Satoshi Hasuo, the representative director and executive officer of Coincheck, emphasized the vast opportunity present in the market, noting that there are nearly three times as many individuals with traditional securities accounts compared to those holding crypto accounts. “Our next step is to strategize on how to attract these individuals,” Hasuo remarked. CJ Fong, the Asia Pacific general manager at crypto market maker GSR, indicated that the firm has been increasingly collaborating with Japanese exchanges and financial institutions this year to enhance liquidity across various digital assets. This surge in activity signifies Japan’s resurgence as a prominent player in the crypto sector, as industry participants leverage the global momentum seen under the administration of former U.S. President Donald Trump. Noriyuki Hirosue, CEO of Bitbank, commented that the Trump administration has motivated Japanese authorities and regulators to adopt a more favorable stance towards cryptocurrencies to ensure that Japan keeps pace with international developments.
### INNOVATIVE PRODUCTS AND NEW ENTRANTS
Established exchanges are proactively developing new products and services in anticipation of regulatory transformations that would subject digital asset gains to taxation similar to traditional securities and facilitate crypto investments through vehicles like ETFs and other tax-advantaged options. The Japan Financial Services Agency is currently refining rule modifications that will be subject to parliamentary discussion, with potential implementation slated for 2026 or 2027. A prior overhaul of foreign exchange trading regulations in 2012 led to a substantial boom, increasing trading volumes tenfold over a decade, according to Hirosue. “I believe this could significantly expand the market,” he added. In August, Coincheck revealed a partnership with the crypto asset division of online marketplace Mercari to offer a broader array of assets to Mercari’s more casual user base. Since Mercari introduced simplified crypto trading functionalities for its users in March 2023, the platform has gained 3.4 million crypto accounts by July 2025, representing over a quarter of Japan’s total accounts, which stand at 13.2 million. This rapid growth is seen as a major step toward making crypto trading more accessible to a wider audience.
SBI VC Trade is contemplating enhancements to its leveraged trading services, anticipating potential increases in leverage ratios from the current two times to between five and ten times, according to representative director and president Tomohiko Kondo. The firm, which is part of the larger SBI Holdings conglomerate, also plans to introduce lending services in USDC stablecoin and is exploring the launch of crypto ETF products. Japan’s financial regulator is reportedly considering allowing members of banking groups to commence cryptocurrency trading services, a move aimed at broadening market accessibility and fostering competitive dynamics.
### PURSUING HIGH RETURNS
The burgeoning interest in crypto trading in Japan coincides with retail investors seeking higher returns while diversifying away from low-yielding investments such as government bonds and bank loans. Umi Soyama, a 27-year-old employee at a Tokyo advertising agency and a crypto investor for two years, stated, “Over 90% of my assets are in cryptocurrency. A diversified portfolio is only beneficial when you already have substantial capital.” Soyama added, “I prefer to take risks at this stage. Once I accumulate sufficient assets, I will branch out into stocks, bonds, and gold.” Many investors have also reacted to the enthusiasm surrounding cryptocurrencies following Trump’s election, with SBI VC Trade reporting a fivefold increase in account registrations during that month. However, the volatile nature of crypto assets presents significant risks for novice investors. “Prices can fluctuate dramatically. It’s essential for individuals to grasp this volatility and recognize that investing in crypto should be seen as an alternative investment, not the primary focus,” cautioned Motonobu Matsuo, senior managing director of the Japan Securities Dealers Association.
As asset prices approach historical highs, some investors are contemplating reducing their crypto holdings. Kou Okamoto, CFO of a Tokyo-based financial firm, has allocated a small portion of his assets to cryptocurrencies since 2019. While he mainly holds Bitcoin, he is considering decreasing his investments in altcoins—cryptocurrencies other than Bitcoin. “You can’t achieve 100 or 200 times returns with other types of investments, and loosening regulations would make crypto more appealing. However, investing in altcoins feels akin to gambling, albeit with somewhat better odds than horse racing,” Okamoto explained. “I am thinking about reallocating those investments into more balanced, medium-risk ventures.”
