The post Japanese Regulator Proposes Deep Rework of Crypto Regulation appeared on BitcoinEthereumNews.com.

Japan’s Financial Services Agency (FSA) presented a proposal that would significantly tighten crypto regulation. A Tuesday FSA report recommends regulating cryptocurrencies under the Financial Instruments and Exchange Act (FIEA), moving them from under the Payment Services Act. This aims to strengthen investor protection and align crypto oversight with securities regulation. The regulator said that many issues within crypto resemble those traditionally addressed under the FIEA, so it may be appropriate to apply similar mechanisms and enforcement. Key problems in crypto investment highlighted in the report include unclear white papers, inaccurate disclosures, unregistered operations, investment scams, low risk tolerances and security concerns within exchanges. A rough translation of the report said: “So it may be appropriate to address them (crypto assets) using the mechanisms and enforcement of the Financial Instruments and Exchange Act.” The report is not legally binding; it is an internal briefing document prepared by the FSA secretariat to present ideas to the Financial System Council. The council is a formal advisory body to Japan’s Financial Services minister, and the government will then decide whether new rules are needed. Japan’s Kasumigaseki Common Gate, headquarters of the Financial Services Agency. Source: Wikimedia Related: Crypto Biz: Japan’s quiet stablecoin coup Crypto is on the rise in Japan The report notes that crypto is playing an increasingly important role in Japan’s economy, with the total number of accounts opened at domestic cryptocurrency exchanges exceeding 12 million and the balance of user deposits reaching over 5 trillion yen ($33.7 billion). This is almost equivalent to one crypto exchange account for every 10 people. Still, it highlighted that small-scale trading is dominant in Japan, with more than 80% of individual accounts holding less than $675. The FSA also noted that 7.3% of those with investment experience hold crypto, more than those trading FX or…

---

Filed under: News - @ September 4, 2025 10:30 pm