Japan considers stricter crypto rules under securities law
Proposed rules under the FIEA would introduce stronger enforcement, regulate brokerages, and curb scams, aiming to enhance investor protection in Japan’s crypto market.
Japan’s Financial Services Agency (FSA) has proposed moving cryptocurrency regulation under the Financial Instruments and Exchange Act (FIEA), which would align oversight with securities law and impose tougher rules on the industry.
The regulator noted crypto issues such as unclear disclosures, scams, unregistered operations, and exchange security weaknesses. Applying the Act could bring stricter disclosure requirements, regulation of brokerages, and enforcement tools such as emergency injunctions.
The report, though non-binding, highlights crypto’s growing role in Japan. Over 12 million exchange accounts have been opened, with deposits exceeding 5 trillion yen ($33.7bn).
Around 70 per cent of users are middle-income earners, and most expect long-term price gains. Finance Minister Katsunobu Kato recently acknowledged that cryptocurrencies could be part of diversified portfolios despite volatility risks.
If adopted, the proposed changes would reshape Japan’s regulatory landscape by treating crypto more like traditional financial instruments, aiming to reduce risks while strengthening investor confidence.
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