Japanese Financial Services Agency Eases Crypto Regulations

The Japanese Financial Services Agency (FSA) has approved a report recommending regulatory reforms to ease the rules for stablecoins and crypto brokerage in Japan.

Key Reforms

According to local media CoinPost, the report, prepared by a working group, suggests policy changes that would alter two main payment-related laws: the Trust Business Act and the Payment Services Act. Despite criticism from local crypto firms regarding strict regulations, the government aims to facilitate smoother operations for businesses managing crypto assets.

One proposed reform allows stablecoins to be backed not only by demand deposits but also by short-term government bonds and fixed-term deposits. Furthermore, an upper limit of 50% on bonds and deposits used as collateral for stablecoins is recommended, helping issuers find a balance between enhanced convenience and safety, while also affording more flexibility in fund management.

New Categories for Crypto Businesses

In addition, the working group suggested establishing a new category for “intermediary” crypto businesses or brokerages. Currently, these firms face the same registration requirements as crypto exchanges in Japan, needing to apply for a virtual asset service provider license. Under the new guidelines, intermediaries would have their own set of requirements and anti-money laundering obligations.

This proposed regulatory shift is expected to create a more accessible environment for crypto firms entering the Japanese market.

Future Classification

Earlier this month, the Japanese FSA announced its consideration of changing the classification of cryptocurrencies under Japanese law, potentially treating them as financial products akin to securities. A final decision is anticipated in June 2025.

Read more: Japan’s FSA weighs treating crypto as securities to pave way for ETFs: report