Japan’s SEC Announces Major Reforms for the Country’s Cryptocurrency Sector

Japan's Financial Services Agency (FSA) announced a comprehensive restructuring of its regulatory structure by announcing its 2026 budget and organizational plan.

These changes include the restructuring of the General Policy Office, the establishment of the Asset Management and Insurance Supervision Office, and special units for crypto assets and cashless payments. These new units include the Crypto Assets and Innovation Office and the Fund Settlement Monitoring Office.

In the crypto asset sector, the existing “Crypto Asset and Innovation Advisory Office,” “Fund Settlement Monitoring Office,” and “Settlement and Digital Finance Group Monitoring Office” will be merged to create a new department responsible for regular market monitoring, fulfilling disclosure obligations in sales processes, implementing adaptive regulations, and managing systemic risks.

Among the tax reform proposals announced on the same day was the exploration of implementing a separate taxation system for cryptocurrency transactions. These steps demonstrate that the FSA aims to bring its investor protection system, both institutionally and organizationally, to a level comparable to the stock market.

*This is not investment advice.