TL;DR

Cryptocurrency holdings in Japan reached a record ¥5 trillion ($33.16 billion) as of July this year.
Investors are seeking higher returns amid low savings yields and a rising cost of living.
Regulators plan to reduce taxes and increase leverage to attract more users in the coming years.

The growth of the crypto market in Japan is experiencing rapid acceleration, reaching a record value of ¥5 trillion ($33.16 billion) in digital assets held by local investors.

This boom is driven by citizens seeking new ways to make their money profitable, in a context where the cost of living is rising faster than wages, and traditional products like savings accounts and government bonds offer near-zero yields.

Attracted by stories of rapid cryptocurrency growth, Japanese investors are showing a greater willingness to take on risk in exchange for better returns in shorter timeframes.

However, the potential for expansion remains considerable. According to market data, the number of Japanese with securities accounts triples that of crypto accounts, representing a “big opportunity” if even a fraction of those investors decides to adopt digital assets.

Exchanges and Regulation Drive Adoption

Cryptocurrency exchanges are capitalizing on this interest, improving their services and forging strategic partnerships. A key example is Coincheck’s partnership with Mercari, one of Japan’s largest e-commerce platforms.

This integration allows Mercari users to access cryptocurrency trading from a familiar and trusted app, which has already increased the number of new accounts in the country.

In parallel, Japan’s Financial Services Agency (FSA) is planning significant regulatory reforms, although they are not expected until 2026 or 2027. These measures aim to make cryptocurrency trading easier and more attractive, considering tax reductions for new investors and increased leverage limits for experienced traders.

Anticipating this, firms like SBI VC Trade plan to raise their leverage limits (currently at 2x) to 5x or even 10x, in addition to exploring lending services with stablecoins like USDC and the creation of crypto ETFs.

The FSA also plans to allow banks to offer crypto services directly, leveraging the trust these institutions inspire in savers to boost the growth of the crypto market in Japan.

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Filed under: News - @ November 5, 2025 12:29 pm