The Japanese Financial Services Agency (FSA) has approved a new report outlining proposed reforms aimed at easing regulations for stablecoins and crypto brokerage firms in the country. According to local media outlet CoinPost, the FSA gave the green light to a working group’s recommendations, which could significantly impact Japan’s cryptocurrency regulatory landscape.
The proposed reforms target two key payment-related laws: the Trust Business Act and the Payment Services Act. These laws currently classify cryptocurrency as a digital payment tool, but the government is responding to feedback from local crypto firms that have criticized the existing regulations as overly restrictive. The proposed changes are designed to make it easier for businesses to manage crypto assets in Japan.
One of the most notable amendments involves allowing stablecoins to be backed by short-term government bonds and fixed-term deposits, in addition to the traditional demand deposits. The working group recommends capping the amount of bonds and deposits used as collateral for stablecoins at 50%. This reform aims to provide stablecoin issuers with more flexibility, balancing convenience and safety. However, the report also emphasized that additional measures might be needed to ensure sufficient user protection.
Furthermore, the working group proposed a new regulatory category for “intermediary” crypto businesses, or brokerages. Under current laws, firms that only facilitate the exchange of crypto assets are required to meet the same registration standards as full-fledged crypto exchanges in Japan. The reform would create separate requirements for these brokerages, including anti-money laundering obligations, making it easier for such firms to operate without the stringent requirements that apply to exchanges.
This regulatory update comes on the heels of the FSA’s earlier announcement that it is considering reclassifying cryptocurrencies under Japanese law. Rather than being viewed as payment tools, cryptocurrencies may be categorized as financial products, similar to securities. A final decision on this reclassification is expected by June 2025.
The latest reforms are seen as a positive step toward making Japan a more attractive environment for crypto businesses, addressing the concerns of local firms and improving the country’s position in the global crypto market.
