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Monday Nov 24 2025 21:50
2 min
The Financial Services Agency (FSA) in Japan is planning to revise its regulatory requirements for local cryptocurrency exchanges, according to a recent Nikkei report. The goal is to ensure that there are effective mechanisms in place to compensate users affected by security breaches or other unforeseen events.
The FSA reportedly cites recent high-profile hacks of global exchanges as a primary driver for this change. The Financial System Council, an advisory body to the FSA, is expected to release a detailed report on the matter following a meeting scheduled for Wednesday. Key recommendations are anticipated to include mandating crypto firms to create liability reserve funds.
This move follows reports that the FSA is also considering revising regulations that could allow banks to purchase and hold cryptocurrency assets. Japan remains a country with a significant concentration of crypto users, boasting approximately 12 million registered accounts as of February, according to FSA data. The country's population is around 123 million.
After a period of establishing regulations recognizing the potential of a Japanese yen-pegged stablecoin, Tokyo-based fintech firm JPYC launched its digital asset in October. The company states that the JPYC stablecoin is backed on a 1:1 basis by bank deposits and government bonds.
In 2022, Japanese regulators prohibited the issuance of stablecoins by non-banking institutions. However, the FSA indicated in August that it could potentially approve the first yen-backed token by 2026. Some of the nation's largest financial institutions, including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank, launched their own stablecoin issuance platform, Progmat, in 2023, and are reportedly exploring the launch of their own tokens. Monex Group, another Japan-based financial company, is also considering the launch of a yen-pegged stablecoin.
Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.
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