Japan Unveils Dedicated Crypto Division in Mainstreaming Push

Japan's Financial Services Agency (FSA) is creating a dedicated division for crypto and stablecoins, marking a significant step towards mainstreaming digital assets in Japan. The new Crypto Assets and Stablecoins Division will launch on August 7, giving the country's digital-asset firms a single supervisor.

The FSA is reorganizing to handle the challenges of financial digitalization and strengthen its ability to supervise financial institutions as technology evolves. The division will have three specialized teams: the Crypto Asset Monitoring Office, the Innovation Promotion Office, and the Digital Payment Planning Office.

Japan has been moving quickly to bring crypto under mainstream financial rules. The country's parliament passed a law that reclassifies crypto assets as financial products under the Financial Instruments and Exchange Act (FIEA), which will take effect in 2027. This change lays the foundation for spot crypto ETFs on the Tokyo Stock Exchange, possibly as early as 2027.

The FSA has also been tightening enforcement against offshore platforms, with some exchanges like Bitget winding down services for Japanese residents following Bybit's earlier exit after FSA warnings.