Japan’s financial watchdog opens public feedback on digital payment and crypto oversight

Japan’s Financial Services Agency (FSA) has initiated a public comment period regarding draft implementation rules for the 2025 amendments to the Payment Services Act. These proposals aim to clarify the practical enforcement of the law concerning crypto, electronic payment instruments, and financial institutions, covering areas like asset-backed bonds and crypto intermediation services. Separately, the FSA is working to modernize its digital asset market, targeting the launch of Japan's first spot crypto ETFs by 2028. This modernization effort includes reclassifying crypto as "specified assets," proposing tax reforms to lower capital gains taxes from up to 55% to a flat 20%, and strengthening investor protection standards. Major financial institutions are already preparing for the anticipated ETF launch.

(Source：Crypto Briefing)