TLDR
- Japan’s FSA opens public comment period on digital payment and crypto laws.
- Public feedback will help shape regulations for crypto, bonds, and payment services.
- Japan’s financial sector is preparing for first spot crypto ETFs by 2028.
- FSA proposes tax reform to reduce crypto capital gains tax to 20%.
Japan’s Financial Services Agency (FSA) has initiated a public comment period to gather feedback on the proposed implementation rules related to the 2025 amendments to the Payment Services Act.
The proposals, which focus on crypto, digital payments, and financial institutions, aim to clarify the regulatory environment and improve enforcement of the law. The public consultation period, which ends on February 27, 2026, is a significant step in shaping the future of Japan’s digital financial services landscape.
🇯🇵JAPAN HEARS THE PUBLIC ON STABLECOIN RESERVES
Japan’s Financial Services Agency is seeking public input until Feb. 27, 2026 on rules defining which bonds can back stablecoin reserves.
Tha goal is to set reserve standards for all regulated yen-pegged stablecoins in Japan. pic.twitter.com/c3HqvUyZ0O
— Coin Bureau (@coinbureau) January 27, 2026
The Payment Services Act amendments are designed to address several areas, including new frameworks for asset-backed bonds, crypto intermediaries, and electronic payment instruments. The FSA plans to finalize these proposals after receiving and considering the public feedback, with the updated regulations set to take effect soon after.
The Focus on Crypto and Digital Payments
The draft rules published by the FSA primarily focus on the digital payment sector and cryptocurrency services. One of the most significant changes involves the classification of crypto as “specified assets,” which will bring it under the scope of regulations like those applied to traditional financial assets.
These revisions are part of Japan’s broader effort to modernize the country’s digital asset market and ensure it aligns with global trends in financial technology.
The public consultation period offers a chance for financial institutions, cryptocurrency businesses, and the general public to express their views on the proposed changes. The outcome of this consultation will play a crucial role in defining the regulatory environment for crypto and digital payments in Japan for years to come.
Japan’s Plan to Launch Crypto ETFs by 2028
In addition to the regulatory updates, the FSA is working on plans to introduce Japan’s first spot crypto exchange-traded funds (ETFs) by 2028. This move is part of a broader strategy to strengthen Japan’s position as a competitive financial hub in Asia.
The launch of spot crypto ETFs would be a major step forward for the Japanese crypto market, as they would allow investors to gain exposure to digital currencies in a regulated manner. To facilitate this development, the FSA is considering tax reforms, including reducing the capital gains tax on crypto from up to 55% to a flat 20%. This change is expected to make the Japanese market more attractive to both domestic and international investors.
Improving Investor Protection and Custody Standards
In light of past exchange hacks and the volatile nature of the crypto market, the FSA is also focused on improving investor protection. The regulatory changes aim to ensure that financial institutions and crypto-related service providers meet high standards for custody and security. These measures are expected to increase confidence in Japan’s digital asset market and prevent potential losses from cyber threats.
As Japan moves toward a more mature digital asset market, the FSA’s focus on strengthening these protections is crucial for building a safe and stable investment environment. The regulatory framework will help safeguard investors and maintain the integrity of Japan’s financial ecosystem as the country explores the potential of new financial products like crypto ETFs.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
