Japan Approves First New Crypto Exchange in Four Years Amid Regulatory Overhaul

Japan has approved its first new cryptocurrency exchange operator in four years under a regulatory framework that is set to be replaced. Laser Digital Japan, the Japanese arm of Nomura's digital-asset subsidiary Laser Digital, completed registration as a crypto asset exchange service provider on August 21.

The firm will initially focus on supplying liquidity to existing crypto exchanges before extending trading services to institutional clients at a later stage. 'Japan's digital assets market is entering a new phase of maturity,' said Jez Mohideen, Laser Digital's co-founder and CEO.

Registration under Japan's Payment Services Act typically takes months to complete due to a checklist of over 400 questions, but the four-year gap does not reflect a moratorium. The time lag is instead attributed to heightened scrutiny following the FTX collapse.

Laser Digital's registration falls under the current framework, which treats crypto assets as payment instruments. However, Japan's parliament has passed legislation reclassifying crypto assets as financial products under the Financial Instruments and Exchange Act, bringing stricter oversight.