Japan's FSA Advances Crypto Asset Reclassification to Financial Instruments Law, Launches Three Stable Coin Payment Pilot Projects

Gate News message, April 23 — Japan’s Financial Services Agency (FSA) has submitted legislation to Parliament proposing to reclassify crypto assets from the Payment Services Act to the Financial Instruments and Exchange Act, according to remarks by Shigeru Shimizu, director of the FSA’s Risk Analysis Division, at the 9th BCCC Collaborative Day conference on April 21.

The proposed framework encompasses four core regulatory components: enhanced disclosure requirements, a new classification for independent operators, stricter penalties for unlicensed entities, and updated insider trading regulations. Simultaneously, the FSA is advancing three pilot projects under its Payment Innovation Project (PIP): a yen-denominated stablecoin cross-border payment trial involving three major Japanese banks, blockchain-based settlement for government bonds, corporate bonds, and equities targeting 24/7 continuous trading, and a tokenized inter-bank deposit transfer experiment that received approval earlier this month (April 3) and will operate in coordination with the Bank of Japan’s central bank reserve tokenization sandbox initiative.

Shimizu stated that blockchain technology holds significant potential for enhancing financial service convenience and product diversification, with the FSA committed to advancing regulatory frameworks and practical implementation support.