Japan Creates Dedicated Crypto Division as FSA Strengthens Digital Asset Supervision

Japan's Financial Services Agency (FSA) has established a dedicated division focused on crypto assets and stablecoins. This move marks a significant shift in how Japanese authorities approach digital assets, treating cryptocurrency more as part of the mainstream financial system.

The new Cryptoasset and Stablecoin Business Division is part of a broader reorganization of the FSA aimed at strengthening supervision while giving individual financial sectors more specialized attention.

The proposed reform to the Financial Instruments and Exchange Act (FIEA) would bring a broad group of crypto assets into the regulatory framework, introducing stronger investor protections and rules governing areas such as disclosures and unfair trading.

Approximately 105 crypto assets are expected to be covered by the changes, including Bitcoin and Ethereum. The proposed framework is designed to apply a broader set of market-conduct and investor-protection principles, including greater attention to disclosure, market manipulation, and insider trading.