What happened?
The Japanese Senate, also known as the House of Councilors, has passed a significant legal amendment to the Payment Services Act, providing more operational freedom for crypto brokerage firms. This new legislation introduces a separate category for “intermediary businesses” with easier regulatory requirements compared to those for crypto exchanges and wallet operators. The bill will take effect in June 2026, after clearing both houses of Japan’s National Diet.
Who does this affect?
This change impacts crypto brokerage firms and potentially other businesses interested in entering the web3 and crypto sectors in Japan. It also affects consumers by promising enhanced protection through new customer safeguards. Additionally, the Prime Minister’s office can mandate that crypto exchanges hold assets domestically, influencing both domestic and international crypto operations.
Why does this matter?
This legislative move is crucial for the crypto market as it could lead to increased activity and innovation within Japan by lowering entry barriers for businesses. By mandating asset holding in Japan, the government aims to prevent scenarios like the FTX collapse, boosting investor confidence. This deregulation may position Japan as a more attractive market for crypto ventures, potentially influencing global crypto policies and practices.