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The Japanese government has approved proposals to modify legal frameworks regulating crypto brokerages and stablecoins.
According to an announcement from Japan’s leading regulatory body, the Financial Services Agency (FSA), along with a news report from the Japanese media outlet CoinPost, the government has endorsed a Cabinet decision to revise the Payment Services Act.
Relaxed Regulations for Crypto Brokerages and Stablecoin Issuers
Tokyo has submitted a bill to finalize the changes to the National Diet. The Diet is highly likely to vote in favor of the amendments in the upcoming days.
Japan proposes crypto tax reductions (55%
20%) and ETF approvals under new reforms, aiming to establish itself as a global crypto hub.#Crypto #Japanhttps://t.co/9a6cw4LgFG
— Cryptonews.com (@cryptonews) March 6, 2025
20%) and ETF approvals under new reforms, aiming to establish itself as a global crypto hub.#Crypto #Japanhttps://t.co/9a6cw4LgFGHistorically, the Japanese parliament has never opposed any crypto-related legal modifications approved by the Cabinet.
Moreover, the Cabinet has never rejected a legal amendment suggested by the FSA, which has considerable authority regarding Japanese crypto regulatory matters.
The bill will enable crypto firms to operate as “intermediary services.” This means that brokers will no longer be required to apply for the same types of licenses that crypto exchanges and crypto wallet operators must obtain.
The legislation also grants stablecoin issuers greater flexibility concerning the types of assets they can use to back their currencies.
Currently, Japanese companies must match the number of tokens in circulation 1:1 with cash deposits in regulated bank accounts.
@FirstDigitalHQ announces a partnership with @Ledger Business Tradelink to enable institutions to utilize $FDUSD for off-exchange settlements.#Stablecoin #Ledgerhttps://t.co/XJe0IeER8W
— Cryptonews.com (@cryptonews) March 7, 2025
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The amendments will instead allow companies to utilize assets such as certain Japanese and US government bonds as backing.
However, not all bonds will qualify: The bill specifies that only certain types of bonds can be used, including those with a remaining maturity of three months or less.
Stablecoin issuers will also be permitted to maintain funds in fixed-term, high-interest bond accounts “that allow early cancellation.”
Issuers will be restricted to using bonds to back their currencies by a maximum of 50%. The remainder must be kept in current accounts.
Bank of Japan officials are inclined to keep interest rates unchanged this month following their increase in January, as rising uncertainties in the global economy require careful monitoring, sources indicate https://t.co/zDdcwBkuQA
— Bloomberg Economics (@economics) March 9, 2025
No AML Requirements for Brokerages
Crypto brokerages, on the other hand, will not be subject to financial obligations or anti-money laundering regulations under the provisions of the bill. This, CoinPost noted, will “lower the barrier to entry.”
To qualify for these new licenses, brokerages must demonstrate that they do not directly handle any of their clients’ funds.
Media reports suggest that some of Japan’s largest (and most crypto-friendly) companies are already considering entering brokerage operations.
These include Mercari, SBI Securities, and Monex Securities. All three of these companies also operate successful domestic crypto exchanges.
The post Japanese Government Approves Crypto Brokerages, Stablecoin Reforms appeared first on Cryptonews.
