Japan’s Financial Services Agency (FSA) has proposed shifting crypto oversight to the Financial Instruments and Exchange Act (FIEA).
Currently, crypto assets are regulated under the Payment Services Act.
The move would classify cryptocurrencies alongside securities, imposing stricter rules on issuers and exchanges.
The FSA says tighter regulation would deter misconduct and improve transparency for investors.
A legislative amendment is planned for submission to the ordinary Diet session next year.
Stricter oversight could weigh on Japanese crypto exchanges in the near term but may bolster longer-term investor confidence and legitimacy of the sector.
