Regulatory AlertsJapan: crypto & digital assets regulation
RegulatedJapan VASP licensing under PSA; FSA supervision with 2022 guidelines
- Lead regulator:
- Financial Services Agency (FSA)
- Key law:
- Payment Services Act (PSA)
- Last updated:
- 2026-07-12
Digital assets are regulated as crypto-assets under the Payment Services Act, requiring providers to obtain registration from the Financial Services Agency (FSA). The FSA defines the scope of crypto-assets and exchange services through supervisory guidelines, ensuring comprehensive oversight of market participants.
Providers must adhere to strict operational standards, including segregation of customer assets and robust cybersecurity measures. The regulatory framework aims to protect consumers and maintain financial stability by enforcing clear criteria for the handling and trading of digital assets.
Recent supervisory focus, as outlined in 2022 guidelines, emphasizes appropriate handling and risk management for crypto-asset exchange service providers. The FSA continues to refine its supervisory approach to address evolving market structures and technological developments.
Who regulates
Financial Services Agency (FSA)
Primary supervisor for crypto-asset exchange services and definition of crypto-assets
[1]
Core laws & rules
Payment Services Act (N/A)
Establishes the legal framework for crypto-asset exchange services and defines the scope of crypto-assets
[1]
Licensing & registration
Crypto-Asset Exchange Service Provider Registration
Providers must register with the FSA to operate, adhering to comprehensive criteria for applicability and handling
[1]
Restrictions & warnings
Strict operational standards apply, including segregation of customer assets and cybersecurity requirements
Direction of travel
The FSA continues to refine supervisory approaches to address evolving market structures and technological developments
[1]
Sources
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