Japanese Senate Approves Crypto Brokerages Reform Bill
The Japanese Senate, the House of Councilors, has approved a legal amendment that will give crypto brokerage firms more freedom to operate in the country.
Per the Japanese newspaper Nihon Keizai Shimbun, senators approved several revisions to the Payment Services Act on June 6.
Japanese Crypto Brokerages: Deregulation on The Way
The revised act contains several crypto-related clauses. But arguably the most significant of these pertains to brokerages.
Currently, brokerages need to apply to the regulatory Financial Services Agency (FSA) for operating permits. These permits are the same, highly restrictive, stringent licences required by crypto exchanges and wallet operators.
The new amendment, however, creates a new legal category in the crypto sector called “intermediary businesses.”
The regulatory barriers for this category will be much easier to overcome. And firms falling into this category will not have to adhere to the same level of regulatory compliance.
The FSA and the government approved the new measures in March this year, submitting the amendments to the National Diet the same month.
The bill passed the lower house without major opposition. Following its approval by the House of Councilors, the bill is now set to promulgate in June 2026.
Bill Will Create New Customer Safeguards, MPs Claim
Lawmakers said the amendment was a response to the rapid rise of digital finance. They also said the bill would help boost customer protection and promote innovation throughout the country.
Japanese media outlets claim that major businesses think the measures will significantly lower the barriers for gaming firms looking to move into the web3 and crypto spaces.
The bill also allows the Prime Minister’s office to order individual crypto exchange operators to hold a portion of their assets in Japan.
The exact amount may be specified by a Cabinet Order. This clause is a response to the collapse of the crypto exchange FTX in 2022.
At the time of its bankruptcy, FTX operated the FTX Japan subsidiary, which was unable to access its overseas funds. This left users unable to withdraw their coins from the FTX Japan platform after the collapse.
The new rules will also prevent overseas operators or subsidiaries from sending their funds overseas if they go bankrupt.
In bankruptcy cases, the government will instead have the power to force crypto operators to issue customer refunds via approved guarantor companies like trust banks.
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