Japan's Financial Services Agency Rates Cryptocurrency Regulation as A Grade
Japan's Financial Services Agency has evaluated the reform of its cryptocurrency regulatory framework and the expansion of stablecoin usage as key achievements in its digital finance policy. In its performance evaluation report for the fiscal year 2025, it awarded an A grade to the digital finance policy, indicating that the goals have been met. The core of the regulatory reform is to shift the regulation of cryptocurrency trading from the Payment Services Act to the Financial Instruments and Exchange Act. The relevant bill was submitted to the National Diet in April and was finalized on July 15. The House of Representatives of Japan announced that it would organize the information disclosure system related to cryptocurrencies and the regulations on trading businesses within the Financial Instruments and Exchange Act. The Ministry of Finance of Japan proposed a plan to apply a 20% separate taxation rate on capital gains from specific cryptocurrencies in the draft tax reform for fiscal year 2026. In the stablecoin sector, the yen-based payment experiment has shown results, and the Financial Services Agency plans to revise the government ordinance under the amended Payment Services Act in 2025, with implementation scheduled for June 2026. The agency is establishing a 'Payment Enhancement Project' within its fintech proof-of-concept hub to support the joint issuance of yen stablecoins. It plans to identify tasks for the healthy development of digital finance in the future.
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