Japanese Government Signs off on Crypto Brokerages, Stablecoin Reforms

The Japanese government has signed off on proposals to reform laws governing crypto brokerages and stablecoins.

Per a release from Japan’s top regulator, the Financial Services Agency (FSA), and a news report from the Japanese media outlet CoinPost, the government has approved a Cabinet decision to amend the Payment Services Act.

Relaxed Rules for Crypto Brokerages, Stablecoin Issuers

Tokyo has sent a bill to finalize the amendments to the National Diet. The Diet is all but certain to vote in favor of the amendments in the coming days.

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— Cryptonews.com (@cryptonews) March 6, 2025

In its history, the Japanese parliament has never voted against any crypto-related legal change approved by the Cabinet.

And the Cabinet, in turn, has never rejected a legal change proposed by the FSA, which has something of a carte blanche when it comes to Japanese crypto regulatory matters.

The bill will allow crypto companies to operate as “intermediary businesses.” That means that brokers will no longer need to apply for the same kind of permits that crypto exchanges and crypto wallet operators use.

The bill also allows stablecoin issuers to enjoy more flexibility when it comes to the type of assets they can use to back their coins.

Currently, Japanese firms need to match the amount of tokens they have in circulation 1:1 with cash deposits in regulated bank accounts.

👉 @FirstDigitalHQ announces a partnership with @Ledger Enterprise Tradelink to enable institutions to leverage $FDUSD for off-exchange settlements.#Stablecoin #Ledgerhttps://t.co/XJe0IeER8W

— Cryptonews.com (@cryptonews) March 7, 2025

The amendments will instead allow firms to use assets like certain Japanese and US government bonds instead.

However, not all bonds will be eligible: The bill stipulates that only certain types of bonds can be used, including bonds with a remaining maturity of three months or less.

Stablecoin issuers can also hold funds in fixed-term, high-interest bond accounts “that allow early cancellation.”

Issuers will only be allowed to use bonds to back their coins by a maximum of 50%. The remainder will need to be held in current accounts.

Bank of Japan officials are leaning toward keeping interest rates unchanged this month after their hike in January and as growing uncertainties in the global economy require close attention, sources say https://t.co/zDdcwBkuQA

— Bloomberg Economics (@economics) March 9, 2025

No AML for Brokerages

Crypto brokerages, meanwhile, will not be subject to financial requirements or anti-money laundering regulations under the terms of the bill. This, CoinPost wrote, will “lower the barrier to entry.”

To qualify for these new licensees, brokerages will have to prove that they do not directly handle any of their clients’ funds.

Media reports claim that some of Japan’s biggest (and most crypto-keen) businesses are already eyeing brokerage operations.

These include Mercari, SBI Securities, and Monex Securities. All three of these firms also operate successful domestic crypto exchanges.