The Payment Services Act (PSA), Act No. 59 of June 24, 2009, is Japan’s core statute for non-bank payment services and a central legal basis for the country’s crypto-asset and stablecoin regulatory framework. As of June 3, 2026, the PSA is in force as amended, with the latest 2025 amendment package effective June 1, 2026. The statute covers prepaid payment instruments, funds transfer services, exchange of electronic payment instruments, exchange of cryptoassets, funds transfer transaction analysis, and clearing for funds transfer transactions.
Japan Payment Services Act overview
The PSA was originally enacted to modernize Japan’s payments framework, protect users, and improve the safety, efficiency, and convenience of payment and settlement systems. For crypto markets, its most important function is that it brings spot crypto-asset exchange services and certain electronic payment instrument services within a registration and supervisory framework administered through the Prime Minister, the Financial Services Agency, and Local Finance Bureaus.
The statute should be read alongside other Japanese financial laws, including the Financial Instruments and Exchange Act, AML/CFT legislation, trust and banking rules, Cabinet Orders, Cabinet Office Orders, and FSA administrative guidelines. This profile focuses on the PSA’s crypto-asset and stablecoin-facing provisions rather than the full prepaid payment instrument and funds-transfer regime.
Key crypto-asset provisions
Registration for crypto-asset exchange services
Article 63-2 provides that crypto-asset exchange services may not be provided unless the person is registered by the Prime Minister. FSA materials describe the registration framework as applying through competent Local Finance Bureaus and include requirements for eligible entities, financial base, secure operations, and compliance systems. The registration requirement began in substance with the 2016 virtual currency amendments, effective April 1, 2017.
User protection and business conduct
The PSA framework is designed around user protection, sound operations, and supervisory intervention. Crypto-facing obligations include information security management, oversight of outsourced functions, advertising disclosures, explanation of contract terms and fees, and rules addressing misleading conduct. FSA materials also describe requirements to preserve user assets, manage systems securely, provide information to users, and explain that crypto-assets are not fiat currency and may involve loss risk.
Electronic payment instruments and stablecoins
The PSA now includes a dedicated chapter for electronic payment instruments, a category used for certain fiat-denominated digital payment instruments that are commonly associated with stablecoin regulation. The framework includes registration for electronic payment instrument exchange service providers, separate management of user electronic payment instruments, periodic audits, and contractual arrangements with issuers addressing liability allocation.
FSA materials describe the stablecoin reform as allowing banks, funds transfer service providers, and trust companies to be relevant issuer types within Japan’s digital-money-type stablecoin framework, with registration requirements for intermediaries. Other tokens that are not stablecoins or security tokens may remain under the crypto-asset framework, depending on their characteristics.
Status, timeline, and 2026 amendment context
The PSA came into force on April 1, 2010. Its crypto-asset framework evolved through several major amendment cycles: virtual currency exchange registration in 2017; the 2019 reforms, effective May 1, 2020, which strengthened crypto-asset custody and conduct rules; the 2022 stablecoin reforms, effective by June 2023; and the 2025 amendment package, effective June 1, 2026.
The 2025 amendments are especially relevant for crypto and stablecoin intermediaries. The FSA described measures addressing asset-retention orders for crypto-asset exchange service providers and electronic payment instrument service providers, a newly created electronic payment instrument and crypto-asset service intermediary business, rules for certain trust-type stablecoin backing assets, cross-border collection agency issues, and funds transfer provider asset-conservation methods.
Jurisdictional impact
For CryptoSlate taxonomy purposes, this profile maps to Japan as a country-level jurisdiction, with the FSA as the primary regulator and affected actors including crypto-asset exchange service providers, electronic payment instrument service providers, stablecoin intermediaries, and funds transfer service providers. The law is active and comprehensive for crypto-asset spot exchange and stablecoin payment-instrument regulation, while securities-token and derivatives issues may also implicate Japan’s securities framework.
