Regulatory Bodies
FSA/JFSA — CAESP registration, exchange oversight, stablecoin regulation, policy development
JVCEA — Mandatory self-regulatory organization — token listing standards (green/white list), operational rules, member m...
**Regulatory Scrutiny:** NFTs are evaluated on a case-by-case basis. If an NFT exhibits characteristics of a security (e...
Operating Models
0/9 verdictsCan specific business models operate in Japan? Each card answers the operational question for one kind of operator. Curated cells reflect counsel-grade review; AI-generated cells should be confirmed before relying on them.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
Primary Legislation
| Law / Regulation | Year | Scope |
|---|---|---|
| FSA/JFSA | 2026 | FSA/JFSA — CAESP registration, exchange oversight, stablecoin regulation, policy development |
| Payment Services Act (amended 2017, 2020) (2017) | 2017 | Payment Services Act (amended 2017, 2020) (2017) — CAESP registration, crypto-asset definition, customer asset segregati... |
| Financial Instruments and Exchange Act (amended 2020) (2020) | 2020 | Financial Instruments and Exchange Act (amended 2020) (2020) — Security tokens (electronically recorded transferable rig... |
| Stablecoin Law (effective June 2023) (2023) | 2023 | Stablecoin Law (effective June 2023) (2023) — Electronic payment instruments — issuance restricted to banks, trust compa... |
| **Supervision and Enforcement:** The FSA supervises licensed exchanges to ensure | 2026 | **Supervision and Enforcement:** The FSA supervises licensed exchanges to ensure compliance with the Payment Services Ac... |
| **Regulation of Security Tokens:** Issuance, trading, and intermediation of secu | 2026 | **Regulation of Security Tokens:** Issuance, trading, and intermediation of security tokens are regulated under FIEA, si... |
Licensing Requirements
FSA/JFSA — CAESP registration, exchange oversight, stablecoin regulation, policy development
JVCEA — Mandatory self-regulatory organization — token listing standards (green/white list), operational rules, member monitoring
Travel Rule
FSA announcement and implementation: https://www.sygna.io/blog/japan-implements-fatfs-crypto-travel-rule/[1]; https://www.fsa.go.jp/en/news/2025/20250625/01.pdf[2]
FATF context via Ministry of Finance: https://www.mof.go.jp/english/policy/international_policy/amlcftcpf/4.international_ei.html[3]
Tax Reporting
No verified facts yet. 2 unverified fact(s) in explorer
Custody Requirements
Custody regulation data collection in progress.
Stablecoin Regulation
**EPI stablecoins**: Fiat-backed with redemption at face value; regulated under PSA Chapter III-2.[3][4]
**Crypto-asset type**: Lacks guaranteed redemption; subject to crypto-asset intermediary rules, with no issuer-specific regulation beyond user protection for handlers.[1][4][5]
FSA outlined this in December 2022, with core rules effective June 2023 and refinements through 2024–2025.[1][3][4]
Securities Classification
Securities classification data collection in progress.
Sanctions & Restrictions
Sanctions data collection in progress.
Enforcement Actions
**Regulator**: Financial Services Agency (FSA).
**Regulator**: National Tax Agency (NTA).
Research & Articles
Regulatory Forecast
high confidenceLikely regulatory action expected around 2026-06-28
Based on 23 historical regulatory events for Japan, averaging every 67 days, with increasing regulatory activity.
Recent Updates
Japan's Groundbreaking Stablecoin Law Takes Effect
Japan became one of the first major economies with a dedicated stablecoin law. Only licensed banks, trust companies, or fund transfer service providers can issue stablecoins, which must be redeemable at face value with 100% fiat reserves. The law defines stablecoins as 'electronic payment instruments' and requires intermediary registration.
**Proposed penalty increases** (March 2025): The FSA is considering raising maximum penalties for unregistered crypto...
**Proposed penalty increases** (March 2025): The FSA is considering raising maximum penalties for unregistered cryptocurrency sales from 3 years/3 million yen to 10 years/10 million yen[1][2][3], but this is a legislative proposal rather than an enforcement action against a specific entity.
**Regulatory requirements**: Existing requirements for FSA registration, AML/KYC compliance, and business improvement...
**Regulatory requirements**: Existing requirements for FSA registration, AML/KYC compliance, and business improvement orders issued to exchanges like Bitflyer and Fisco[4], but without specific penalty amounts or dates in the requested format.
**Banks:** Issue stablecoins as deposits covered by Japan's existing deposit insurance system
**Banks:** Issue stablecoins as deposits covered by Japan's existing deposit insurance system
**Fund transfer service providers:** Back tokens with money deposits, bank guarantees, or entrusted safe assets (incl...
**Fund transfer service providers:** Back tokens with money deposits, bank guarantees, or entrusted safe assets (including Japanese government bonds)
**Trust companies:** Hold all trusted assets as bank deposits, with provisions allowing up to 50% in low-risk short-t...
**Trust companies:** Hold all trusted assets as bank deposits, with provisions allowing up to 50% in low-risk short-term instruments post-2025
**Banks:** Deposits subject to prudential regulations; holders are protected up to 10 million JPY by deposit insurance
**Banks:** Deposits subject to prudential regulations; holders are protected up to 10 million JPY by deposit insurance
**Fund transfer service providers:** Money deposits, bank guarantees, or entrusted safe assets
**Fund transfer service providers:** Money deposits, bank guarantees, or entrusted safe assets
**Trust companies:** Bank deposits; post-2025, up to 50% in low-risk short-term instruments
**Trust companies:** Bank deposits; post-2025, up to 50% in low-risk short-term instruments
FSA outlined this in December 2022, with core rules effective June 2023 and refinements through 2024–2025.[1][3][4]
FSA outlined this in December 2022, with core rules effective June 2023 and refinements through 2024–2025.[1][3][4]
**Penalty Amount:** Public warning (julkinen varoitus). While not a monetary fine, it's a formal and significant disc...
**Penalty Amount:** Public warning (julkinen varoitus). While not a monetary fine, it's a formal and significant disciplinary measure by the FIN-FSA, obliging the company to rectify its shortcomings.
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