JAPAN Trends and Developments Contributed by: Keiji Tonomura, Shu Sasaki, Kazuyuki Ohno and Otoki Shimizu, Nagashima Ohno & Tsunematsu
Nagashima Ohno & Tsunematsu JP Tower 2-7-2 Marunouchi Chiyoda-ku Tokyo 100-7036 Japan
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Review of Regulations on Crypto-Asset Trading Overview Japan’s intermediation businesses for crypto-assets are currently regulated under the Payment Services Act (PSA) (Act No 59 of 2009). This framework was introduced in 2017 when crypto-assets were primarily contemplated as a means of payment. Today, how - ever, there is a growing trend, both domestically and internationally, to view crypto-assets principally as investment assets. Against this backdrop, the Japanese Financial Ser - vices Agency convened an experts’ panel to consider the future regulatory framework for crypto-assets. On 10 December 2025, this panel released the “Working Group Report on Crypto-Assets Framework”, which proposes reforms to the regulatory framework for crypto-assets. The report reflects discussions among academics, market participants and practitioners, and proposes a shift toward a more securities-like frame - work tailored to the risks and features of crypto-asset markets. The report observes that use of crypto-assets as a payment method remains limited, while their charac - terisation as investment assets has advanced in Japan and abroad. It also notes the emergence of fraudulent investment solicitations involving crypto-assets and market integrity concerns such as information asym - metries and operational vulnerabilities. In light of these developments, the report proposes bringing financial regulations regarding trading in crypto-assets within the scope of the Financial Instruments and Exchange
Act (Act No 25 of 1948), which stipulates financial reg - ulations regarding transactions in investment assets. This approach would align core protections – disclo - sure, business regulations and market abuse prohibi - tions – with those applicable to traditional investment assets, while allowing for crypto-assets-specific cali - bration. Proposed revisions to the regulatory framework First, the report proposes revisions to disclosure obli - gations. For crypto-assets with an issuer, where that issuer raises funds, the issuer would be required to provide information regarding the characteristics and substance of the crypto-asset. The contemplated content includes information on the issuer, intended use of proceeds, details of the underlying project, the nature and functions of the crypto-asset, its supply, underlying technology, associated rights and obliga - tions, and inherent risks. In addition, the report pro - poses that investor protection should be supplement - ed through caps on the investment amount where investors cannot rely on audited financial statements. In cases where there is no fundraising or where the crypto-asset has no issuer, the obligation to provide information would be imposed on the intermediaries that facilitate trading, with content expected to cover the nature and functions of the crypto-asset, its sup - ply, underlying technology, associated rights and obli - gations, and inherent risks. Second, the report proposes changing the regulations framework on crypto-assets businesses. Intermedi -
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