Why did Japan include Shiba Inu in the same list as Bitcoin and Ethereum?

Japan's financial regulator includes Shiba Inu Coin in Approved Asset List

Japan's financial regulator includes Shiba Inu Coin (SHIB) on the Approved Asset List along with Bitcoin and Ethereum because the memin passed the green list screening of the Japan Virtual Currency and Crypto Asset Exchange Association (JVCEA). This is a compliance check covering transparency, liquidity and exchange listings. The move makes SHIB the first memecoin to receive such level of recognition from G7 national regulators, and it is now under the regulatory framework of Japan's financial reform, like about 105 other digital assets.

What is Japan's green list?

The Green List is a white list operated by JVCEA, a self-regulatory organization that oversees Japan's licensed cryptocurrency exchanges. Created in 2022, the list allows exchanges to add pre-approved tokens without having to conduct a full individual review each time. Before SHIB joined, there were about 30 assets on the list, including Bitcoin, Ethereum, Ripple, Litecoin and Polygon.

How did Shiba Inu coins qualify?

To enter the green list, tokens must meet specific benchmarks set by Japanese regulators. For SHIB, this includes:

being listed on at least three JVCEA registered exchanges (SHIB was already trading on eight exchanges at the time); passing transparency and technical robustness reviews; and meeting liquidity thresholds tracked by member exchanges. Once approved, SHIB will qualify for the same simplified listing process as Bitcoin and Ethereum on Japanese licensed platforms.

What changes have occurred to Japanese cryptocurrency laws since then?

Approval of the green list is part of a larger regulatory shift. Japan's parliament finally approved an amendment on July 15, 2026 to move crypto assets from the Payment Services Act to the Financial Commodity Exchange Act (FIEA)-which also applies to stocks and bonds. The move reclassifies Bitcoin, Ethereum, SHIB and approximately 105 other tokens as financial instruments.

From payment rules to securities-based regulation

According to the FIEA, exchanges face broader disclosure obligations, and insider trading restrictions apply to cryptocurrencies for the first time. The maximum penalty for operating a cryptocurrency business without registration has been raised from three years in prison to ten years. The FIEA framework is expected to be fully effective in fiscal year 2027.

Timetable for 20% tax rate has not yet been determined

A related but separate measure, the 2026 Tax Reform Outline, proposes to reduce the tax on cryptocurrency gains from a maximum progressive rate of about 55% to a fixed rate of 20.315%(including a 15% national tax, a 5% local tax, and a 2.1% national partial reconstruction surcharge). This tax rate only applies to "specific crypto assets" traded through FSA licensed exchanges. The specific effective date depends on the cabinet's schedule rather than a fixed calendar: if the cabinet's implementation of the FIEA rules is completed in 2026, the tax reform will begin on January 1, 2027; if implementation is postponed to 2027, it will begin on January 1, 2028. Most current reports believe that the latter date is more likely. The reform also adds a three-year loss carry-forward, a right that equity investors already enjoy. About 70% of Japan's more than 13 million cryptocurrency accounts hold less than 7 million yen (approximately US$43,600), so once the tax rate takes effect, the retail investor community will directly benefit the most.

What is the current trading status of SHIB?

As of late July 2026, the trading price of SHIB is approximately US$0.0000046, and its market value is close to US$2.7 billion. Depending on the tracker, its market value ranks between 30th and 40th. As of July 29, the token has risen about 7% in the past week as part of a broader rally. Cryptocurrency commentator David Gokhshtein noticed its rise with Dogcoin in late July, saying this synergy was a positive signal for the memin sector.

What does this mean outside of SHIB?

Being included in the green list does not guarantee a price increase, but it reduces regulatory resistance to exchange listings and supporting tokens, and subjects SHIB's token economics and compliance record to the same scrutiny as mature assets. For a market where memes are often seen as unregulated speculation, Japan's formal approval sets a well-documented precedent that other regulators may refer to.

Conclusion

Japanese regulators added Shiba Inu to the green list after it met exchange, liquidity and transparency requirements, placing it under the country's compliance framework along with Bitcoin and Ethereum. In addition, Japan's parliament passed a law to reclassify cryptocurrencies as a financial instrument, while the fixed tax rate of 20.315% remains to be implemented in 2027 or 2028. SHIB is currently trading at approximately US$0.000046 and has a market value of approximately US$2.7 billion.