Japan FSA Finalizes New Rules for Stablecoins, Crypto Intermediaries, and Funds Transfers

Japan’s Financial Services Agency moved to finalize a fresh round of rules under the Funds Settlement Act, clearing the way for a broader set of payment-related measures to take effect on June 1, 2026. The package covers electronic payment methods, including stablecoins, intermediary businesses for crypto assets and electronic payment services, and funds transfer businesses, according to the agency’s announcement. The FSA said the new ordinance, cabinet office orders, and related guidelines were published together after a public comment process and will be applied from June 1.

The most closely watched change involves trust-type electronic payment methods, where the FSA said reserve assets for specific trust beneficiary right-type instruments may now be invested not only in demand deposits but also, under certain conditions, in government bonds and cancellable fixed-term deposits. The regulator also set out clearer requirements on the permissible allocation ratio and on safeguards designed to prevent principal loss, signaling a more detailed compliance framework for issuers and custodians than before. In the FSA’s earlier explanatory materials, officials noted that Japan had already introduced stablecoin rules in 2022 and that the new revision is aimed at giving issuers more flexibility while keeping consumer protection intact.

New Crypto Intermediary Regulations

Another major part of the reform is the creation of a new intermediary category for electronic payment instruments and crypto assets. The FSA said the newly established intermediary business now has explicit rules covering registration, the information that must be disclosed to users, explanation obligations, prohibited conduct, and other user-protection measures, along with the content of required books and records. In the agency’s policy materials, the point of the new framework is to regulate only those firms that act as intermediaries, rather than imposing a full-scale licensing burden designed for firms that actually hold client assets. That distinction is expected to matter for companies that want to connect users with crypto-asset or stablecoin services without operating as full exchanges or payment issuers themselves.

The package also addresses cross-border payment activity and the treatment of certain foreign-related payment structures. The FSA said the reforms define categories of cross-border collection and payment arrangements that are excluded from foreign-exchange transaction rules, while also clarifying how banks, insurers, and their subsidiaries may participate in the new intermediary business. At the same time, the agency said it received 259 comments from 62 individuals and organizations during the consultation process, suggesting that the rules drew substantial attention from industry participants and legal observers before being locked in. The agency’s notice added that the relevant ordinances and cabinet office orders were approved by the cabinet on May 19 and formally published on May 22.

For Japan, the changes mark another step in the slow but steady normalization of stablecoins and digital payment tools inside the formal financial system. Rather than treating the sector as a narrow crypto niche, the FSA is extending a more structured rulebook to payment instruments, intermediaries, and money transfer services at the same time. That approach suggests Tokyo wants innovation to move forward, but only inside a tightly supervised framework that keeps reserve assets, disclosures, and user protection at the center of the system. With the June 1 effective date now set, firms in the affected businesses will have to align their operations with the new rules almost immediately.