Japan's move is quite interesting. The latest data shows that the Japanese government is expected to achieve an approximate 1.34 trillion yen primary fiscal surplus in FY2026, marking the first time since 1998. Meanwhile, the cabinet has just finalized an annual budget of 122.3 trillion yen, with Prime Minister Fumio Kishida stating quite plainly—that this money must both support economic growth and stabilize the fiscal fundamentals. In other words, they aim to dispel market concerns about Japan's long-term debt.

The broader context behind this is actually quite crucial. The ten-year government bond yield has surged to a 27-year high, and policy focus has shifted—from merely plugging the deficit to genuinely reducing debt-to-GDP ratios. Under this framework, cryptocurrencies and digital assets are officially incorporated into the national wealth-building plan. According to the FY2026 tax reform outline, digital assets are explicitly classified as "financial products that contribute to the formation of national assets."

The specific tax arrangements are basically set:

• Gains from spot, derivatives, and ETF trading will be taxed separately (at relatively lower rates)
• Losses can be carried forward for up to 3 years
• Income from staking, lending, and NFT trading will still be handled under comprehensive taxation (details are still under study)

From this series of actions, Japan's approach seems to be to tighten fiscal policy while institutionalizing crypto finance, hoping that this "dual-track" strategy can drive the economy toward a more sustainable growth path. Interestingly, this also reflects a shift in attitude among major global economies—from tolerance to proactive inclusion of digital assets.