- Japan’s FSA creates three specialized offices to oversee crypto exchanges, financial innovation and digital payment policy.
- New rules classify crypto as financial instruments, adding insider trading restrictions, disclosures and tougher penalties.
- Japan plans a 20% crypto tax from 2028, while banks and licensed firms continue developing yen-pegged stablecoins.
Japan’s Financial Services Agency created a dedicated Cryptocurrency and Stablecoin Division on Aug. 7. The move followed the agency’s Aug. 5 announcement and reorganized crypto oversight under three specialized offices. The restructuring comes after Japan’s financial law changes reclassified Bitcoin, Ethereum and 103 other tokens as financial instruments.
FSA Creates Three Specialized Crypto Offices
The new division replaced the previous office-level structure handling cryptocurrency supervision. Previously, the Cryptocurrency Monitoring Office and Cryptocurrency and Blockchain Innovation Office operated under the Comprehensive Policy Bureau.
The new division operates under the Asset Management and Insurance Supervision Bureau. It includes the Cryptocurrency Monitoring Office, Innovation Promotion Office and Digital Payment Planning Office.
The FSA said the restructuring addresses new regulatory demands from financial digitalization. It also aims to strengthen supervision as financial technology continues to develop. Notably, the Cryptocurrency Monitoring Office will oversee crypto exchange operators.
Meanwhile, the other two offices will handle financial innovation and digital payment policy. The changes also follow a broader overhaul of Japan’s financial rules.
Crypto Reclassified As Financial Instruments
Japan amended its Financial Instruments and Exchange Act to treat crypto assets as financial instruments. Previously, digital assets mainly fell under the Payment Services Act. The revised framework introduces insider trading restrictions and additional disclosure requirements.
It also raises penalties for unregistered crypto operators. Unregistered operations can now face penalties of up to 10 years in prison. Fines can reach ¥10 million, compared with the previous ¥3 million maximum.
The changes also create a framework for possible spot crypto ETFs on the Tokyo Stock Exchange. Finance Minister Satsuki Katayama has said she will push forward with reviewing ETF approvals.
Tax And Stablecoin Rules Also Face Changes
Japan also plans changes to crypto taxation from Jan. 1, 2028. The proposed system would apply a 20% tax rate and allow losses to carry forward. Currently, crypto gains can face income tax rates reaching 55%.
The proposed rate would match taxation applied to traditional securities profits. Meanwhile, MUFG, Mizuho and Sumitomo Mitsui are involved in stablecoin experiments.
Only licensed banks, money transfer providers and trust companies can issue yen-pegged stablecoins. The FSA has also tightened action against offshore platforms. Bitget said it would wind down Japanese services after FSA pressure, following Bybit’s earlier exit.
