Members of Japan's ruling Liberal Democratic Party (LDP) have proposed reforming the country's cryptocurrency tax system and developing yen-pegged stablecoins. According to Nada News, the parliamentary association for blockchain technology development has submitted a special recommendation to Finance Minister Satsuki Katayama. The document covers issues including stablecoins, exchange-traded funds (ETFs), central bank digital currencies (CBDCs), and the implementation of blockchain applications. This is reported by Cointelegraph.com reports .
The recommendation proposes doubling the leverage limit for retail crypto derivatives trading and creating a legal framework for digital asset-backed ETFs. In response, Finance Minister Katayama emphasized that Japan must not lag behind global changes, citing US crypto legislation and systems as examples. LDP member Junichi Kanda noted the necessity of expanding the on-chain financial system across Asia, including the popularization of yen stablecoins.
This initiative comes two months after the Japanese government allowed crypto assets to be classified as financial instruments rather than just payment methods. The country's Financial Services Agency (FSA) is also planning to amend its regulatory framework to permit crypto ETFs. Currently, the global stablecoin market is valued at $320 billion, dominated primarily by USD-pegged tokens.
According to the Bank for International Settlements (BIS), the market capitalization of yen-pegged stablecoins accounts for less than 0.01% of dollar-pegged coins. Meanwhile, the prediction platform Polymarket, currently under regulatory pressure in the US, is exploring opportunities to enter the Japanese market by 2030. However, the country's strict gambling laws could pose a significant barrier for the company.
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