Catenaa, Wednesday, June 11, 2025 –Japan’s Senate, the House of Councilors, approved a significant amendment to the Payment Services Act on June 6, loosening regulations for crypto brokerage firms and creating a new legal category called “intermediary businesses.”
The move aims to give these firms greater operational freedom while maintaining customer protections.
Currently, crypto brokerages in Japan face stringent licensing requirements identical to those imposed on exchanges and wallet operators.
Under the new amendment, intermediary businesses will have reduced regulatory burdens, streamlining their path to market.
The Financial Services Agency and government approved the changes in March, with the bill passing the lower house smoothly earlier this year. The legislation is expected to take effect in June 2026.
Lawmakers said the reform responds to the rapid growth of digital finance, aiming to balance innovation with enhanced customer safeguards.
The bill gives authority, the Prime Minister’s office to require crypto exchange operators to hold a portion of their assets domestically, a measure inspired by the 2022 collapse of FTX Japan that left users unable to access funds locked overseas.
The legislation also restricts overseas subsidiaries from transferring funds abroad in bankruptcy scenarios, allowing the government to compel crypto firms to refund customers through trusted guarantor firms such as trust banks.
The reforms are expected to ease entry for gaming and Web3 firms eyeing Japan’s crypto market while reinforcing consumer protections.
