According to CoinWorld news, the Financial Services Agency (FSA) of Japan plans a major reorganization in fiscal 2026, establishing a new bureau to regulate insurance, asset management, and emerging financial services, including digital assets. Strengthening regulation amid insurance scandals. This reorganization comes after a series of incidents in the insurance industry (including customer data breaches and improper transfers by partner banks). The FSA intends to restore public trust and strengthen governance by separating insurance regulation from the regulatory bureau. The current bureau will be renamed the 'Bank and Securities Supervision Bureau', which will be responsible for overseeing large banks, regional banks, and securities companies. The new bureau—tentatively named the 'Asset Management and Insurance Supervision Bureau'—will combine the oversight of insurance and asset management under one framework. This is the first major organizational change since the abolition of the Inspection Bureau in 2018. Officials noted that the reforms address past misconduct while also preparing for emerging financial markets. Japan hopes these changes will encourage households to shift savings toward investments and promote corporate growth. Expanding regulatory scope to local institutions and emerging markets. The Financial Services Agency will appoint a 'regulatory planning officer' to oversee credit cooperatives and cooperatives. Previously, Iwaki Credit Bank in Fukushima Prefecture was found to have engaged in improper lending practices. By expanding oversight of local institutions and emerging financial services, the agency aims to prevent misconduct and enhance transparency. The new agency's responsibilities regarding digital assets reflect Japan's recognition that innovation requires specialized regulation. The regulatory agency plans to establish guidelines for cryptocurrencies and digital finance, ensuring investor protection while supporting market growth. Officials expect this reorganization will strengthen governance and position Japan as a leading center for asset management and digital finance in Asia. The dual strategy of the Financial Services Agency balances the immediate issues in the insurance industry with the long-term goals of emerging financial markets. It integrates traditional finance and digital finance, aiming to establish a more cohesive regulatory framework. According to Yomiuri Shimbun, officials believe these reforms will restore confidence, enhance regulation, and provide clear rules for both traditional and digital markets. Japan's approach highlights the government's commitment to modernizing the financial industry. The Financial Services Agency plans to focus on emerging financial technologies while paying attention to traditional markets, promoting innovation while protecting consumer rights. Industry observers point out that including crypto assets within the regulatory scope signifies that regulators recognize their growing economic importance.