- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Stablecoin issuers gain regulatory clarity, fostering innovation.
- New domestic asset requirements protect Japanese investors.
Japan’s government amended the Payment Services Act in June 2025, reshaping crypto regulations. The Ministry of Finance and Financial Services Agency led the changes, focusing on stablecoins and investor protections.
The amendments deepen investor confidence, support crypto market growth, and prevent past exchange failures.
Overview of the Amendments
Japan’s government has revised the Payment Services Act to bolster the country’s crypto regulation. Key figures like Finance Minister Katsunobu Kato emphasized domestic custody of assets to avoid significant outflows, addressing concerns raised by past crypto exchange failures.
“Crypto exchanges must hold investor assets domestically to avoid outflows from foreign bankruptcies,” said the Ministry of Finance, Japan.
The revisions specifically impact stablecoin issuers, allowing them to operate under clearer guidelines. This move aligns Japan with global regulatory standards and is expected to foster innovation and institutional investment growth in the cryptocurrency space.
Expected Impacts and Developments
The new rules are expected to enhance investor confidence in the Japanese crypto market. Regulatory clarity should encourage more retail and institutional participation, indirectly supporting the broader economy. Stablecoin-based products may also see increased interest.
Potential outcomes include strengthened investor protections, reduced risks of exchange failures, and a more robust domestic crypto market. Past crypto incidents prompted Japan’s regulatory overhaul, focusing on stablecoins and asset custody to prevent future collapses. Data and historical trends support these targeted reforms.
