On Tuesday, Japan's Financial Services Agency (FSA) proposed a new set of regulations classifying cryptocurrencies under the Financial Instruments and Exchange Act, which is expected to take effect from 2026. The move aims to shift cryptocurrencies from the category of means of payment under the current Payment Services Law to a completely new regulatory model.
The plan will be considered by the Financial System Council on June 25. The FSA recommends legalizing exchange-traded Bitcoin funds (ETFs) and replacing the current 55% progressive tax with a flat 20% tax on cryptocurrency profits.
Japan FSA Tightens Control Over Cryptocurrency Service Providers
The FSA plans to impose stricter regulations on businesses involved in cryptocurrency investments, requiring them to register with financial authorities. The regulation comes amid a rise in reports of cryptocurrency-related scams.
Japan has been developing a legal and tax framework for digital assets since April 2025. The Web3 project group under the ruling Liberal Democratic Party has proposed classifying digital assets as a separate asset class under the Financial Instruments and Exchange Act (FIEA).
The FSA survey on investor attitudes shows that 7.3% of domestic investors with investment experience are holding crypto assets, surpassing the proportion invested in forex trading or corporate bonds.
The proposed changes would align cryptocurrencies with regulations governing stocks and other traditional financial instruments, according to the FSA. The agency also said it would amend the Financial Instruments and Exchange Act to implement the updates.
Amendments to the Payment Services Act (PSA) include a relaxation of reserve requirements for stablecoins. Current law requires stablecoin issuers to hold the entire issuance value in readily withdrawable deposits and similar highly liquid assets. The amendment allows up to 50% of the issuance value to be managed in low-risk assets with minimal risk of principal loss.
Another reform in the PSA is the establishment of a new electronic payment service system. Currently, intermediaries that only connect cryptocurrency exchange service providers and users are subject to strict registration regulations like fully functional cryptocurrency exchanges.
The amendment creates a new category for intermediaries that do not hold customer assets. According to the FSA, intermediaries will focus on connecting buyers, sellers or exchanges of cryptocurrencies with registered electronic payment or transaction service providers.
The FSA also proposes to empower the regulator to require service providers’ assets to be held in Japan, with the aim of preventing the outflow of assets in the event of bankruptcy at cryptocurrency exchanges or spot electronic payment service providers.
The move from Japan comes as global regulators shift how they regulate digital assets. In March, the U.S. Commodity Futures Trading Commission (CFTC) announced that digital asset derivatives would be treated like traditional financial products.
Regulators Adapt New Approach to Cryptocurrencies
Also during this period, the US Federal Deposit Insurance Corporation (FDIC) issued new guidance allowing financial institutions under its supervision to engage in cryptocurrency-related activities without FDIC approval, as long as the risks are adequately managed.
“I expect this to be one of several steps the FDIC takes to build a new model that allows banks to engage in blockchain and cryptocurrency-related activities with safe and sustainable standards.”
– Travis Hill, Interim Chairman of the FDIC Board of Directors.
The FDIC also expects to issue additional guidance to clarify the role of banks in digital asset-related activities. At the same time, the FDIC hopes to coordinate with other banking regulators to develop alternative regulations to the current interagency documents.
Banks will have to maintain robust risk management controls as they expand into new cryptocurrency-related activities, similar to those they have for traditional operations, said Rodney E. Hood, acting director of the Office of the Comptroller of the Currency (OCC). The policy is intended to reduce regulatory burden and ensure a consistent approach to banks’ cryptocurrency activities.
Source: https://tintucbitcoin.com/fsa-nhat-sua-doi-quy-dinh-tien-dien-tu/
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