Nikolas Sargeant
Japan’s Financial Services Agency (FSA) is considering a major shift in its cryptocurrency regulations, exploring the possibility of classifying cryptocurrencies as financial products akin to securities. According to reports from Yahoo Japan, the FSA has started closed-door discussions with industry experts to review its existing crypto regulatory framework. The agency aims to outline a policy direction by June, with a potential legal amendment to be proposed by 2026.
If implemented, the classification of cryptocurrencies as securities could introduce more stringent regulations, making it more challenging for retail investors to participate. However, this move could also pave the way for the approval of spot crypto exchange-traded funds (ETFs) in Japan. Discussions are still ongoing, with the FSA deliberating whether to apply existing laws under the Financial Instruments and Exchange Act or to introduce new rules under different regulatory frameworks.
The Japanese government has already shown interest in crypto ETFs. A domestic study group in October recommended the prioritization of Bitcoin and Ethereum, calling for regulatory reforms tailored to digital assets. Additionally, a Japanese lawmaker has formally requested the creation of a strategic Bitcoin reserve. This focus on crypto-friendly policies could signal Japan’s continued interest in positioning itself as a global leader in cryptocurrency regulation.
