Shiba Inu makes Japan’s 'Green List,' passing as a BTC, ETH-level cryptocurrency

Shiba Inu (SHIB) has officially been added to Japan’s “Green List,” placing it alongside Bitcoin (BTC) and Ethereum (ETH), and part of the country’s most trusted cryptocurrency investments. 

The announcement, made by the Japan Virtual and Crypto Assets Exchange Association (JVCEA), is the first time a G7 nation has officially recognized the memecoin. According to the JVCEA, a self-regulatory body overseeing digital assets, the green list comprises 30 cryptos approved for broader regulatory compliance. 

The agency also mentioned plans to change Japan’s crypto regulatory framework, where tokens in the list will be governed by the same laws applied to traditional stocks trading, as covered by a Monday report from local news publication Asahi Shimbun.

Tax proposal could boost SHIB investment

The Financial Services Agency (FSA) has also proposed a significant tax reduction for cryptos on the green list, lowering the levy from 55% to 20%. Shiba Inu holders could see a substantial decrease in taxes owed on profits if the government signs the legislative proposal into law.

Calculations under the current rate would see a trader who recently made $45,000 from SHIB face a tax bill of $24,750. If the proposed 20% levy is approved, that amount would drop to $9,000, a rather significant incentive for investors to buy SHIB.

“SHIB has officially joined Japan’s ‘Green List,’ standing beside BTC and ETH. A proposed tax drop from 55% → 20% could make this a huge catalyst,” wrote Shiba Inu’s official X account in celebration of the recognition.

The approval of SHIB followed an assessment by Japanese regulators, who verified the token’s compliance with specific standards like being listed on at least three licensed exchanges. Shiba Inu surpassed this requirement, appearing on eight licensed platforms after the trading firms vetted the token’s ecosystem.

Japan’s green list was established in 2022, made for streamlining the approval process for trusted tokens. However, final implementation of the new tax rates and related regulations is contingent upon approval during Japan’s fiscal year 2026 budget cycle.

Former Prime Minister Shigeru Ishiba previously reiterated that cryptocurrency development is “extremely important” for the country. Japan could likely become a crypto-friendly jurisdiction by the end of 2026, competing with nations like Singapore, South Korea, and the special Chinese administrative city of Hong Kong. 

Japan stock exchange concerned about DAT crypto companies

While the green list expands opportunities for tokens like SHIB, Japanese authorities are carefully monitoring corporate crypto activity. Japan Exchange Group Inc. (JPX), which operates the Tokyo Stock Exchange, is considering measures to restrict the growth of listed companies’ digital-asset holdings. 

Sources familiar with the matter speaking anonymously to Cryptopolitan said JPX is leaning towards stricter backdoor listing rules and the requirement of fresh audits for firms investing heavily in crypto, but no final decisions have been made.

Since September, three listed companies have paused plans to acquire cryptocurrencies due to pushback from JPX, which cautioned them that fundraising could be restricted if financial firms try to pivot to become digital asset treasuries (DATs). 

The bourse does not currently impose overarching rules against crypto accumulation but monitors companies “from a risk and governance perspective, with a view to protecting shareholders and investors,” a JPX representative said in an email.

Tokyo-listed Metaplanet Inc. is the country’s largest Digital Asset Treasury (DAT) operator, with over 30,000 coins in its possession, collected after it shifted its model from a hotel business to become the fourth-largest Bitcoin DAT worldwide in early 2024. The company saw its shares drop more than 75% from a June 16 peak, after a prior surge of around 420%. 

Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program