Key Highlights of the Regulatory Draft
Japan's Financial Services Agency (FSA) has unveiled a draft of the regulatory implementation rules covering cryptocurrencies, digital payment instruments, and financial institutions. This public consultation phase aims to gather input on the execution framework for the 2025 revised Payment Services Act, including updates to official notifications, administrative guidelines, and regulatory protocols.
The consultation will remain open for feedback until February 27, 2026, after which the finalized regulations will proceed through necessary procedures before taking effect. The outcomes of the consultation will be disclosed separately.
Broad Scope of Coverage
- Expansion of eligible supporting assets, including the addition of bonds
- Enhanced regulatory framework for digital payment instruments and crypto-related intermediary services
- Revised supervision guidelines for financial institutions and their subsidiaries
Regulatory Vision Ahead
The FSA is planning a comprehensive overhaul of Japan's financial regulations with the goal of launching the country’s first spot cryptocurrency ETFs by 2028. This strategic roadmap includes classifying cryptocurrencies as 'specified assets' under the Investment Trust Act and advocating for a flat 20% capital gains tax rate, down from the current 55% maximum.
Additionally, regulators are allocating time to strengthen custody solutions and investor protection mechanisms to ensure sustainable market growth.