#What are the New Regulations from Japan's FSA Regarding Crypto and Payments?
Japan's Financial Services Agency has launched a public comment period on its draft implementation rules that will affect cryptocurrencies and electronic payment systems. This initiative follows recent updates to the Payment Services Act, originally enacted in June 2025. The proposals detail how the amendments will be enforced and also include revisions to administrative guidelines and supervisory regulations, providing a clear framework for compliance.
The draft regulations cover various aspects including designations for bonds that will serve as collateral, frameworks governing electronic payment instruments, and guidelines for crypto-related services. Financial institutions and their subsidiaries will also see updated supervisory rules aimed at improving regulatory oversight.
Once the consultation period concludes on February 27, 2026, the law will be finalized and take effect after undergoing the necessary procedures. Results from the consultation will be publicized subsequently.
#When Will Japan Launch Its First Crypto ETFs?
You might be wondering when Japan plans to roll out its first crypto exchange-traded funds. The FSA aims for a launch by 2028 as part of a broader overhaul of the regulations governing the country's cryptocurrency market. This plan addresses concerns about competitiveness in relation to global financial centers such as the United States and Hong Kong.
Among the key changes are plans to reclassify cryptocurrencies as "specified assets" under the Investment Trust Act. Additionally, proposed tax reforms aim to reduce crypto gains tax rates from the current high of 55% down to a flat rate of 20%. There is also a focus on enhancing custody and investor protection standards in the wake of security breaches that have affected past exchanges.
Major financial players, including Nomura Holdings and SBI Holdings, are already laying the groundwork for these ETF products, signaling strong anticipation for the upcoming regulations.
Investors should keep a close eye on these developments as they unfold, while the financial landscape in Japan continues to evolve towards more inclusive digital asset solutions.