Key Takeaways
- Japan’s Financial Services Agency (FSA) is pushing to better contain crypto within its regulatory perimeter.
- The FSA’s latest proposal would create a dedicated crypto division.
- The agency also wants to legally classify crypto assets as financial products.
Japan’s Financial Services Agency (FSA) has proposed an organizational restructuring that includes plans to establish a “Crypto Assets and Innovation Division.”
The FSA framed the reorganization as essential to respond effectively to emerging trends in digital finance, including the rise of crypto assets.
The FSA Proposal
This proposed division would be housed under a newly renamed Asset Management and Insurance Supervision Bureau, formerly the General Policy Bureau.
Meanwhile, the FSA proposed a budget of JPY 25 billion for the upcoming fiscal year, marking an increase of JPY 1.19 billion compared to the previous year.
The proposal will now be passed to the Ministry of Finance for consideration and potential amendment.
Ultimately, the Cabinet must approve the final budget, including any reorganization of government agencies.
Crypto Regulation in Japan
The FSA’s latest proposal comes amid a broader push for crypto regulation in Japan.
In March 2025, reports surfaced that the FSA intended to amend the Financial Instruments and Exchange Act to accord crypto assets legal status as financial products.
Meanwhile, in June, the FSA finalized amendments to impose “travel‑rule” obligations on Virtual Asset Service Providers (VASPs), requiring them to collect information about the originator and beneficiary of crypto transfers.
Together, these developments signal an important shift.
Japan is moving from supervisory policies toward more formal integration of crypto within the financial regulatory infrastructure, featuring dedicated oversight structures and stronger legal tools.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
