Japan: crypto & digital assets regulation

Regulated

Japan regulates crypto under PSA; FSA licenses exchanges and custodians

Lead regulator: Financial Services Agency (FSA)
Also involved: SEC-equivalent: Financial Instruments and Exchange Act (FIEA) regulator for security tokens
Core law: Payment Services Act (PSA) 2017 (amended 2023)
Entry capital: JPY 500m (Exchange)
Approval timeline: 6-12 months for exchange license
Customer assets: Segregated from company assets; no commingling
Data protection: Act on Protection of Personal Information (APPI)
Sandbox: Yes - Regulatory Sandbox

Japan maintains a robust regulatory framework for digital assets under the Payment Services Act (PSA), overseen by the Financial Services Agency (FSA). The regime distinguishes between 'crypto-assets' (virtual currencies) and 'security tokens' (regulated under the Financial Instruments and Exchange Act). Recent reforms have strengthened consumer protection, mandated segregation of customer assets, and introduced specific licensing for stablecoin issuers and custodians.

Which licence do you need?

Your activity	Requirement	Capital	Timeline	Authority
Exchange / trading platform	LicenceCrypto-Asset Exchange Service Provider^[1] Must segregate customer assets and maintain high security standards	JPY 500m	6-12 months	FSA
Custody of client assets	LicenceCustody Service Provider^[1] Newly regulated under 2023 PSA amendments for non-exchange custody	JPY 500m	6-12 months	FSA
Token issuance / public offering	LicenceInitial Coin Offering (ICO) / Security Token Offering Security tokens regulated under FIEA; utility tokens may fall under PSA	Varies	Case-by-case	FSA
Broker-dealer / OTC desk	LicenceFinancial Instruments Business Provider Required if dealing in security tokens or providing investment advice	Varies	6-12 months	FSA
Stablecoin issuance	LicenceElectronic Payment Issuer^[1] Stablecoins defined as electronic payments; strict reserve requirements apply	JPY 500m	6-12 months	FSA
Crypto payments acceptance	LicenceMoney Transfer Service Provider Crypto-to-fiat transfers require money transfer license	JPY 500m	6-12 months	FSA
Mining / staking services	Unregulated Generally unregulated unless involving security tokens or advisory	—	—	—
Advisory / portfolio management	LicenceInvestment Advisory and Discretionary Agency Required for advice on security tokens or investment decisions	Varies	6-12 months	FSA

New — what changed recently

2023-04-01PSA Amendments — Introduced licensing for stablecoin issuers and custody service providers, strengthening consumer protection.^[1]
2022-12-14FSA Supervisory Guidelines — Clarified scope of crypto-assets and exchange services, emphasizing asset segregation and security.^[1]

Market-entry checklist

1Secure FSA LicenseApply for Crypto-Asset Exchange Service Provider license with JPY 500m capital.
2Segregate Customer AssetsImplement strict segregation of customer crypto-assets from company funds.
3Establish Security ProtocolsDeploy multi-signature wallets and cold storage for asset protection.
4Comply with AML RulesImplement KYC and transaction monitoring systems per FSA guidelines.
5Register with FIEAIf dealing in security tokens, register as a Financial Instruments Business Provider.

Sources

Guideline for Supervision of Crypto-Asset Exchange Service Providers · 2022-12-14

This guide is compiled automatically from 1 primary-source documents published by Japan's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.