Japan’s FSA delivers on 2025 promise to launch crypto and stablecoin division

Japan’s Financial Services Agency (FSA) will launch a dedicated Crypto Assets and Stablecoins Division on August 7, giving the country’s digital-asset firms a single supervisor.

The agency is following through on a reorganization it approved back in December 2025, and is a major step forward in the country’s goal to treat crypto like mainstream financial products. 

What does the new FSA division do? 

Crypto oversight in Japan has typically been scattered across low-level offices, but the Financial Services Agency will be launching a division with three specialized teams dedicated to the sector, called the Crypto Assets and Stablecoins Division, on August 7. 

Before the creation of this division, cryptocurrency-related work was handled by the Crypto, Blockchain and Innovation Office and the Crypto Monitoring Office— both of which sat under the Risk Analysis Division of the Comprehensive Policy Bureau. These were small office-level units without much authority or visibility.

The new Crypto Assets and Stablecoins Division sits under the newly created Asset Management and Insurance Supervision Bureau, and has more staff, a larger budget, and more authority than the previous administration.

The three specialized offices within the division include the Crypto Asset Monitoring Office, the Innovation Promotion Office, and the Digital Payment Planning Office. 

The FSA said the restructuring is needed to handle new challenges from financial digitalization and to strengthen its ability to supervise financial institutions as technology evolves. 

The division’s launch will fulfill a promise made eight months ago by Finance Minister Satsuki Katayama when she announced the reorganization plan on December 26, 2025, at a press conference after a cabinet meeting. 

What else is changing for crypto in Japan?

Japan is in the middle of executing a plan that includes reclassifying crypto, cutting taxes, and possibly approving Bitcoin (BTC-USD) ETFs. The new division is part of that plan. 

Japan has been moving fast to bring crypto under mainstream financial rules. Cryptopolitan previously reported that the country’s parliament passed a law set to take effect in 2027 that reclassifies crypto assets as financial products under the Financial Instruments and Exchange Act (FIEA), rather than the Payment Services Act. 

The change means that crypto will be treated like stocks and bonds, with stricter rules including bans on insider trading, stricter disclosure requirements, and heavier penalties for unregistered operators, such as up to 10 years in prison (up from 3 years) and fines of up to ¥10 million (about $61,600), up from ¥3 million (about $18,500). 

The reclassification also lays the foundation for spot crypto ETFs on the Tokyo Stock Exchange, possibly as early as 2027. Finance Minister Satsuki Katayama has said she will push forward on reviewing ETF approvals. 

Regarding taxes, Cryptopolitan reported that a companion tax proposal expected to apply from January 1, 2028, would cut Japan’s maximum crypto tax from 55% to a flat 20%, matching the rate on stocks. 

Japan’s three megabanks, MUFG (NYSE: MUFG), Mizuho (NYSE: MFG), and Sumitomo Mitsui (NYSE: SMFG), are already involved in stablecoin experiments under the new framework. 

Only licensed banks, money transfer providers, and trust companies can issue yen-pegged stablecoins in Japan. 

The FSA has also been tightening enforcement against offshore platforms. Bitget said this month it would wind down services for Japanese residents, following Bybit’s earlier exit after FSA warnings.