Japan Completes Crypto Regulatory Overhaul Shifting Oversight to Securities Framework

Japan's Financial Services Agency has finalized amendments transitioning digital asset oversight from the Payment Services Act to the Financial Instruments and Exchange Act. The reforms mandate stricter disclosures, custody protections, and fraud prevention measures as cryptocurrencies gain mainstream adoption. Japan records 20,000 to 40,000 unique active Bitcoin addresses daily, but analysts note the country's substantial household wealth could drive significant institutional demand through ETFs and regulated investment vehicles.