TLDR:

• • Japan’s LDP secured over two-thirds of seats, fast-tracking long-delayed crypto tax reform proposals.
    
  • The FSA plans to reclassify Bitcoin and Ethereum as financial instruments, enabling spot ETFs.
    
  • A flat 20% crypto tax rate has bipartisan support and is expected to move forward under the new cabinet.
  • STARTALE’s Watanabe says regulatory clarity will draw foreign investment and unlock domestic Web3 growth.

Crypto asset tax reform in Japan has moved closer to reality following the inauguration of the second Takaichi Cabinet.

The Liberal Democratic Party secured more than two-thirds of seats in the House of Representatives elections. This strong political base is expected to accelerate long-pending regulatory changes.

STARTALE Group CEO Sota Watanabe told BeInCrypto that the election results could compress the reform timeline by months. Japan’s Web3 industry is now watching closely as key policy changes take shape.

New Administration Sets the Stage for Faster Regulatory Action

The second Takaichi Cabinet was officially inaugurated on the 18th of this month. With a commanding legislative majority, the new government now holds enough political capital to push through stalled reforms.

Watanabe noted that several proposals had already been drafted but were waiting for political prioritization.

Watanabe was direct about what the election outcome means for reform speed. “With Governor Takaichi’s landslide victory, the new administration has gained the political capital necessary to expedite the reforms that had already been drafted but were waiting to be prioritized,” he said.

He added that the outcome is expected to “accelerate the timeline for reform in months compared to divided governments and uncertain outcomes.”

Japan’s Financial Services Agency (FSA) has signaled its intent to reclassify crypto assets. Bitcoin and Ethereum could shift from “payment methods” to regulated financial instruments.

A flat 20% separate taxation on crypto trading gains is also on the table, with bipartisan support strengthening its chances of passing.

FSA Reclassification Could Unlock Spot ETFs and Institutional Products

If the FSA reclassification moves forward under the revised Financial Instruments and Exchange Act (FIEA), spot crypto ETFs become a real possibility.

Japan’s ETF market has already shown early momentum in this direction. Formalizing the framework would give institutional investors a regulated entry point into digital assets.

Watanabe described the reclassification as a foundational shift. “The FSA has already indicated its intention to reclassify many crypto assets, including Bitcoin and Ethereum, from payment methods to regulated financial instruments,” he explained.

“This is a foundational change that allows for institutional entry, ETF development, and a more mature market structure.”

The FIEA revision would also establish a framework for securitized crypto products. This aligns crypto assets with the same legal standing as stocks and other securities.

Watanabe noted that Japan is taking a framework-first approach, unlike the United States, which approved spot Bitcoin ETFs before establishing a unified federal regulatory structure.

Japan’s Position in Asia and Global Crypto Markets

Japan held the most comprehensive crypto regulatory framework in Asia for many years. However, that framework was also viewed as overly restrictive by many in the industry. That perception, according to Watanabe, is now beginning to shift.

On the global comparison, Watanabe was clear about where Japan stands. “If the amendment to the Financial Instruments and Exchange Act is passed and the 20% tax rate takes effect, Japan will become one of the countries with the most consistent end-to-end regulatory environment for digital assets in the world,” he said.

He also noted that while Hong Kong promotes its VASP licensing system aggressively, it “does not have the domestic consumer market and corporate ecosystem that Japan provides.”

On the global stage, Japan’s end-to-end regulatory clarity sets it apart from other markets. That consistency is what foreign businesses and institutional investors look for when choosing a base. The upcoming reforms are expected to solidify that position further.

STARTALE’s Strategic Role in Japan’s Web3 Infrastructure

STARTALE Group is currently co-developing Soneium, a Layer 2 blockchain, with Sony. The company is also working with SBI Holdings on a JPY-denominated stablecoin and a Layer 1 blockchain called Straivm. These projects reflect the kind of long-term institutional commitment that regulatory clarity makes possible.

Watanabe spoke directly about how regulatory uncertainty has affected operations. “We’ve seen firsthand how regulatory uncertainty can hold back both domestic builders and international partners,” he said.

“The results of this election eliminate that key variable.” He also noted that treating cryptocurrencies as financial instruments “changes the quality of interactions with institutional, bank, and corporate clients.”

For foreign companies, a flat tax rate and clear FIEA classifications make Japan one of the most attractive regulated markets globally. Japan already has one of the most active retail investor bases in the world.

As Watanabe put it, the reforms under consideration will “unleash a wave of domestic innovation and foreign investment that the Japanese Web3 sector has been waiting for.”

ETH fell ~60% from 2025 peak as Bitmine bought 45,759 ETH for $91m, lifting staked holdings to 3.04m.

Bitmine Immersion Technologies, led by Tom Lee, purchased 45,759 Ethereum tokens valued at approximately $91 million during a market downturn, according to a company press release.

The acquisition increased Bitmine’s total Ethereum holdings to 4.37 million tokens, the company announced. Of that total, 3.04 million tokens are currently staked, generating ongoing staking rewards for the firm.

Lee stated in the press release that the price decline presented an attractive entry point from an Ethereum fundamentals perspective. The company believes Ethereum’s utility justifies a higher valuation than current market prices, according to the statement.

The purchase was completed as Ethereum experienced a price decline, though specific price levels were not disclosed in the announcement. The transaction represents a significant institutional bet on the second-largest cryptocurrency by market capitalization.

Bitmine’s staking operations generate annual income through validator rewards on the Ethereum network. Management expects substantial staking incentives that will contribute to the company’s return on investment, according to the press release.

The Ethereum network has recently seen growth in real-world asset tokenization, with on-chain RWA market capitalization surpassing a multi-billion-dollar milestone, according to blockchain analytics data. This development has reinforced Ethereum’s position in decentralized finance applications.

Bitmine Immersion Technologies recently completed a strategic acquisition, though details of that transaction were not specified in the announcement.

The company’s stock price has declined in recent trading sessions despite the substantial cryptocurrency accumulation. The divergence between stock price and underlying asset value is common among cryptocurrency-holding companies during volatile market periods.

Technical analysts have noted accumulation patterns in Ethereum addresses, with large purchases potentially establishing support levels. The cryptocurrency has traded in a descending channel pattern, with key support levels being monitored by market participants.

Market liquidity conditions could lead to increased price volatility in either direction, according to trading analysts.

The dollar strengthened following the release of the minutes from the Federal Open Market Committee, reflecting the regulator’s more hawkish tone. In the document, policymakers highlighted persistent inflationary risks and the need for a cautious approach to any potential policy easing. This reduced expectations of imminent rate cuts and supported demand for the US currency.

At the same time, the market remains focused on upcoming US macroeconomic releases due before the end of the week. Attention is centred on the Philadelphia Fed Manufacturing Index, initial jobless claims, trade data, and housing market statistics. These releases could either reinforce the impact of the minutes or partially offset it if the figures come in weaker than expected.

Overall, the dollar has rebounded from support levels after the publication of the minutes. However, the further development of the upward correction in USD/JPY and USD/CAD will depend on incoming data. Market sentiment remains neutral-analytical, as participants assess whether the data will confirm the resilience of the US economy or trigger a deeper dollar correction.

USD/JPY

After testing the support zone near the January lows, USD/JPY has moved into an upward corrective phase. Technical analysis points to the potential for gains towards 155.80–156.30, as a bullish engulfing pattern has formed on the daily timeframe. The upside scenario would be invalidated by a sustained move below 154.00.

Key events for USD/JPY:

• today at 15:20 (GMT+2): speech by FOMC member Bostic;
• today at 15:30 (GMT+2): Philadelphia Fed Manufacturing Index (US);
• today at 15:30 (GMT+2): US initial jobless claims.

USD/CAD

USD/CAD has also rebounded from the January lows and formed a bullish reversal pattern. The pair is currently approaching the key resistance level at 1.3700. If buyers manage to secure a firm break above this level in the coming sessions, further gains towards 1.3730–1.3800 are possible. Conversely, a move below 1.3630–1.3590 could open the way for a retest of the 1.3500 area.

Key events for USD/CAD:

• today at 15:30 (GMT+2): Canada’s trade balance;
• today at 17:30 (GMT+2): Canadian export data;
• today at 19:00 (GMT+2): US crude oil inventories.

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[PRESS RELEASE – Amsterdam, Netherlands, February 18th, 2026]

ICON Amsterdam today announced that it closed 2025 with its strongest financial performance to date, marking a milestone year following a period of internal restructuring and operational realignment. The company also confirmed that it is preparing to explore expansion into the United States in 2026.

According to the company, 2025 revenue reached record levels compared to prior years. Leadership attributes the performance to refined product focus, tighter inventory management, improved departmental accountability, and strengthened coordination between marketing, operations, and product teams.

The milestone follows a period earlier in the decade marked by rapid scaling, rising costs, and internal coordination challenges that affected cash flow and alignment. In response, the company initiated a structured operational review instead of continuing accelerated expansion.

As part of this process, ICON updated its performance tracking systems, clarified departmental responsibilities, and introduced standardized operating procedures to support more consistent execution. According to leadership, the company adjusted its growth strategy to prioritize operational stability and the development of repeatable processes over rapid expansion.

“Growth must be supported by structure,” said Samuel Onuha, Founder of ICON Amsterdam. “The focus over the past two years has been on strengthening the fundamentals of the business.”

In addition to reporting record performance for 2025, ICON confirmed it is evaluating phased entry into the U.S. market in 2026. The company indicated that any expansion would be incremental and aligned with existing operational capacity.

ICON is also preparing for the opening of its first physical retail presence in Amsterdam. While details remain under review, the initiative would represent a transition from a primarily direct-to-consumer model toward a blended retail approach.

Leadership emphasised that the company intends to maintain a measured growth strategy moving forward, prioritising operational discipline and financial sustainability.

Further updates regarding retail development and international expansion are expected to be shared in 2026.

About ICON Amsterdam

Founded in 2018, ICON Amsterdam is a Netherlands-based direct-to-consumer menswear company focused on modern tailoring and stretch-engineered apparel. The company operates primarily online and serves customers across Europe and international markets. ICON emphasises structured operations, product consistency, and disciplined growth strategy.

[PRESS RELEASE – Denver, Colorado, February 18th, 2026]

CoinFello, an AI agent capable of interacting directly with smart contracts, will be introduced to ETHDenver attendees during the conference’s opening ceremonies. The debut provides attendees with early access to CoinFello through a special preview application called BuffiBot, created by the CoinFello team.

For ETHDenver, CoinFello developed BuffiBot as the event’s official AI assistant for conference information. Attendees can ask about schedules, speakers, workshops, expo vendors, and side events. The experience is accessible through the ETHDenver app and supports both text and real-time voice interactions.

BuffiBot synthesizes ETHDenver’s hundreds of sessions and activities into a single conversational interface. While the ETHDenver deployment highlights a live event use case, CoinFello’s broader functionality extends beyond conference support.

CoinFello is designed as an AI application for executing and automating interactions with smart contract protocols. Through a chat-based interface, the agent interprets context, executes user-defined intents, and manages both synchronous and asynchronous smart contract actions. The system is built to present smart contract functionality in plain language.

The platform analyzes a user’s wallet history to surface relevant tokens, protocols, and potential actions, reducing reliance on traditional browser-based decentralized applications. CoinFello is also launching as an EIP-8004 agent, enabling it to be called by other AI agents within Ethereum’s emerging agent ecosystem.

CoinFello was founded by JacobC.eth, previously Lead of Operations for MetaMask at ConsenSys. At MetaMask, he helped develop growth and monetization strategies for the Ethereum wallet.

“The previous model for crypto UX is saturated,” said jacobc.eth. “Agentic AI enables onchain execution and DeFi interactions to become accessible to billions of people through familiar and safer user experiences.”

“We’re pleased to collaborate with the CoinFello team as they bring agent-driven experiences to users through the MetaMask Smart Accounts Kit,” said Ryan McPeck, Product Lead at Consensys for the MetaMask Smart Accounts Kit. “We see a future where AI agents can safely act on behalf of users using granular, transitive permissions that allow individuals to define how activity is executed on-chain.”

ETHDenver attendees will receive exclusive access to CoinFello without joining the public waitlist. Access to CoinFello will continue following the conference, while the BuffiBot experience remains exclusive to ETHDenver.

“ETHDenver has always been where the edges of possibility converge — where builders come to test what the future feels like before the rest of the world catches up,” said John Paller, Founder of ETHDenver. “The fusion of decentralized infrastructure and agentic AI signals a new chapter for coordination itself. When humans and autonomous systems co-create in open networks, we expand who can participate and how value is generated. This is the frontier — and it’s unfolding in real time.”

About CoinFello

CoinFello is an AI agent designed to explain, execute, and automate interactions with smart contracts. Built for self-custody, the platform is currently available in private alpha for end users, with developer versions expected soon. CoinFello supports EVM-compatible networks, leverages EigenAI to enable a self-custodied AI environment, and integrates the MetaMask Smart Accounts Kit to provide users with control over their assets.

U.S.-listed crypto ETFs are flashing red across the board, with one notable exception.

Bitcoin spot ETFs saw $133.3 million in daily net outflows as of Feb. 18, led by BlackRock’s IBIT, which shed $84.2 million, and Fidelity’s FBTC, which lost $49 million. Total net assets across bitcoin funds stand at $83.6 billion, roughly 6.3% of bitcoin’s market cap, but recent flows suggest institutions are trimming exposure rather than adding on dips.

Ethereum products followed a similar pattern. U.S. ETH spot ETFs recorded $41.8 million in net outflows on the day, with BlackRock’s ETHA losing nearly $30 million. Total net assets across ether funds sit at $11.1 billion, about 4.8% of ETH’s market cap.

The steady bleed comes as ether trades below $2,000 and struggles to build momentum despite broader expectations of rate cuts later this year.

XRP ETFs also slipped into negative territory, posting $2.2 million in daily outflows. Total net assets across XRP funds are just over $1 billion, or roughly 1.2% of XRP’s market cap. Price action in XRP has mirrored the cautious tone, with the token down over 4% on the day.

Solana, however, stood out.

U.S. SOL spot ETFs recorded $2.4 million in net inflows, pushing cumulative inflows to nearly $880 million. Bitwise’s BSOL led with $1.5 million in fresh capital. While modest in absolute terms, the inflow contrasts sharply with the broader risk-off positioning across bitcoin and ether products.

Elsewhere, smaller altcoin ETFs such as LINK saw marginal inflows, but the overall picture remains one of selective exposure rather than broad-based accumulation.

The divergence suggests investors are rotating within crypto rather than exiting entirely. With macroeconomic uncertainty lingering and the dollar firming, ETF flows offer a real-time read on where institutional conviction remains and where it is fading.

Senate Banking Committee ranking member Elizabeth Warren has reportedly sent a letter to Treasury Secretary Scott Bessent and Federal Reserve chair Jerome Powell, urging them not to bail out “cryptocurrency billionaires” with taxpayer dollars. 

Warren warned that any potential bailout “would be deeply unpopular to transfer wealth from American taxpayers to cryptocurrency billionaires,” adding that it could also “directly enrich President Trump and his family’s cryptocurrency company, World Liberty Financial, according to CNBC.

The letter comes as Bitcoin (BTC) prices have fallen more than 50% from their all-time high in October, hitting a local low of $60,000 on Feb. 6.

The letter also came on the same day that World Liberty Financial hosted its first “World Liberty Forum” for crypto executives and pro-industry policymakers at the President’s private Mar-a-Lago club in Palm Beach, Florida.

The US government is retaining seized Bitcoin  

Senator Warren also referenced the Financial Stability Oversight Council’s Annual Report hearing on Feb. 4, during which Secretary Bessent was asked about his authority to bail out the crypto industry.

During the hearing, Congressman Brad Sherman asked Bessent if the Treasury Department “has the authority to bail out Bitcoin?” or instruct banks to buy Bitcoin or Trumpcoin (TRUMP). 

A bemused Bessent asked for clarification on the question, stating that “within the context of asset diversification within banks, they could hold many assets.”

Related: Senators ask Bessent to probe $500M UAE stake in Trump-linked WLFI

Sherman also expressed concern that US tax dollars might be invested in crypto assets. “Why would a private bank be your tax dollars?” asked the Treasury secretary.

Bessent confirmed that “we are retaining seized Bitcoin,” which is not tax money, but an “asset of the US government.”  

Senator Warren claims response was deflection

Warren saw the exchange differently, stating in her letter that Bessent “deflected.” 

“It’s deeply unclear what, if any, plans the US government currently has to intervene in the current Bitcoin selloff,” she wrote. 

“Ultimately, any government intervention to stabilize Bitcoin would disproportionately benefit crypto billionaires.” 

“Your agencies must refrain from propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires through direct purchases, guarantees, or liquidity facilities,” the letter reportedly stated. 

Cointelegraph reached out to Warren and the Treasury for comment, but did not receive an immediate response. A Federal Reserve spokesman confirmed they had received the letter but declined to comment. 

Magazine: Chinese New Year boosts interest, TradFi buying crypto exchanges: Asia Express