Japan FSA Gives Digital Finance Policy Top Grade After Regulatory Overhaul

Japan's Financial Services Agency (FSA) has completed its self-assessment of its digital finance policy, giving it an 'A' grade for achieving its goals. The agency assessed its performance from July 2025 to June 2026 and cited several key achievements.

The FSA overhauled the cryptocurrency regulation system by moving it from the Payment Services Act to the Financial Instruments and Exchange Act framework. This change strengthens investor protection and lays the groundwork for applying rules on insider trading and other unfair trading.

The agency also eased regulations on the management and operation of reserve assets for trust-type stablecoins, and created a new Payment Innovation Project (PIP). Through PIP, it is supporting joint proof-of-concept efforts by megabanks to issue a yen stablecoin.