Japan Proposes Major Crypto Regulatory Shift to Securities Law Framework
Japan's Financial Services Agency has unveiled plans to transfer cryptocurrency oversight from the Payment Services Act to the Financial Instruments and Exchange Act. This strategic pivot reflects growing recognition of digital assets as investment vehicles rather than mere payment instruments.
The proposed framework mandates stringent disclosure requirements for token issuers, aligning crypto offerings with traditional securities listings. Initial exchange offerings must now provide team backgrounds, tokenomics details, and independent code audits—a move designed to protect investors in an increasingly sophisticated market.
This regulatory evolution positions Japan alongside Europe and South Korea in establishing comprehensive crypto governance. Market participants anticipate the changes will legitimize digital asset investments while weeding out non-compliant platforms.
