The Japanese Senate, known as the House of Councilors, has granted approval for a legal change that will provide crypto brokerage firms with enhanced operational flexibility in the nation.
According to the Japanese publication Nihon Keizai Shimbun, senators endorsed several changes to the Payment Services Act on June 6.
Japanese Crypto Brokerages: Deregulation on The Horizon
The updated act includes several provisions concerning cryptocurrencies, with the most noteworthy focusing on brokerages.
At present, brokerages must seek operating licenses from the regulatory Financial Services Agency (FSA), which are the same strict licenses required of crypto exchanges and wallet providers.
The amendment introduces a new classification in the crypto domain called “intermediary businesses.”
The regulatory requirements for this category will be significantly less burdensome. Firms categorized as such will not need to comply with the same stringent regulatory standards.
In March of this year, both the FSA and the government backed the new measures, presenting the amendments to the National Diet within the same month.
The bill was approved by the lower house with minimal opposition. With its passage in the House of Councilors, it is scheduled to be enacted in June 2026.
The Bill Aims to Establish New Customer Protections, MPs Assert
Lawmakers have indicated that the amendment is a reaction to the swift growth of digital finance. They claim the legislation will enhance customer protection and foster innovation across Japan.
Reports from Japanese media suggest that leading businesses believe the new rules will substantially reduce the barriers for gaming companies aiming to enter the web3 and crypto sectors.
The legislation also permits the Prime Minister’s office to direct specific crypto exchange operators to keep a percentage of their assets within Japan.
The precise amount may be dictated by a Cabinet Order, introduced as a measure in response to the downfall of the crypto exchange FTX in 2022.
When FTX went bankrupt, it operated the FTX Japan branch, which could not access its overseas funds, leaving users unable to withdraw their cryptocurrencies from the FTX Japan platform following the collapse.
The new regulations will also bar foreign operators or branches from relocating their funds abroad in the event of bankruptcy.
In such bankruptcy situations, the government will have the authority to compel crypto operators to process customer refunds through authorized guarantor companies, such as trust banks.
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