Japan's FSA Proposes Stricter Rules for Crypto Lending and IEO Investment Caps

Japan's Financial Services Agency announced proposed regulations on November 7, 2025, to tighten oversight of cryptocurrency lending services and introduce investment caps on Initial Exchange Offerings. The agency aims to close regulatory gaps and enhance investor protection through mandatory risk disclosures and custody requirements. The proposal sets IEO investment amounts exceeding 500,000 yen at a maximum of 5% of revenue or net assets, capped at 2 million yen.