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The Japanese Senate, known as the House of Councilors, has sanctioned a legislative modification that will grant cryptocurrency brokerage firms increased operational flexibility within the nation.
According to the Japanese publication Nihon Keizai Shimbun, senators ratified multiple amendments to the Payment Services Act on June 6.
Japanese Crypto Brokerages: Deregulation on The Horizon
The updated act includes various provisions related to cryptocurrency. However, the most noteworthy aspect pertains to brokerages.
The National Diet Building, in Tokyo, Japan. (Source: Kestrel [CC BY-SA 4.0])
At present, brokerages are required to seek operating licenses from the regulatory Financial Services Agency (FSA). These licenses are the same, highly restrictive, stringent permits mandated for crypto exchanges and wallet providers.
The recent amendment, however, introduces a new legal classification in the cryptocurrency sector termed “intermediary businesses.”
The regulatory hurdles for this classification will be significantly less challenging to navigate. Firms categorized as such will not be subject to the same degree of regulatory compliance.
The FSA and the government endorsed the new provisions in March of this year, presenting the amendments to the National Diet within the same month.
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The bill passed the lower house with minimal opposition. Following its endorsement by the House of Councilors, the bill is now scheduled to be enacted in June 2026.
Japan will maintain its position of pursuing a review of all US tariffs in what could be the final ministerial-level discussions prior to a leaders’ summit this month https://t.co/oYmq2lX1Wm
— Bloomberg (@business) June 5, 2025
Bill Will Establish New Customer Protections, MPs Assert
Japanese media sources report that major corporations believe the measures will considerably reduce the barriers for gaming companies aiming to enter the web3 and cryptocurrency sectors.
The bill further empowers the Prime Minister’s office to instruct individual crypto exchange operators to retain a portion of their assets within Japan.
The specific amount may be determined by a Cabinet Order. This provision is a response to the downfall of the crypto exchange FTX in 2022.
During its bankruptcy, FTX managed the FTX Japan subsidiary, which was unable to access its international funds. This situation left users unable to withdraw their assets from the FTX Japan platform following the collapse.
The new regulations will also prohibit foreign operators or subsidiaries from transferring their funds abroad in the event of bankruptcy.
In bankruptcy scenarios, the government will instead possess the authority to compel crypto operators to issue customer refunds through approved guarantor entities such as trust banks.
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