Takaichi may “refine” existing token definitions, crypto regulatory frameworks
Experts say Takaichi’s administration could bring greater clarity to token classifications under Japan’s Financial Services Agency. The FSA currently distinguishes between payment tokens, securities, and utility tokens, each with different regulatory requirements.
Takaichi’s leadership will likely focus on the “refinement and expansion” of existing categories, particularly related to custody, tokenized financial instruments and investor protection standards, according to Fabrega.
“We may see the consolidation of supervisory tools related to Anti‑Money Laundering, the implementation of more strict disclosure requirements for public offerings involving digital assets, and a more structured framework for the authorization of platforms engaging in token issuance or trading.”
Japan embraces crypto regulations since Mt. Gox collapse
Japan has been developing its crypto regulatory framework since at least 2016, when the FSA amended the Payment Services Act (PSA) to establish a regulatory regime imposing the first registration requirements for cryptocurrency exchanges.
This came in response to the meltdown of Mt. Gox, which exposed pressing regulatory gaps in the country.
In April 2017, the new amendments took effect, requiring exchanges to register with the FSA and comply with Anti‑Money Laundering and Know Your Customer standards.
In April 2018, crypto exchanges came together to form the Japan Virtual Currency Exchange Association (JVCEA), prior to the FSA granting the JVCEA self‑regulatory status in October 2018.
In June 2022, Japan’s parliament introduced new regulations allowing licensed financial institutions to issue fiat‑backed stablecoins, requiring issuers to fully back stablecoins with reserves held domestically in yen.
In April 2023, Japan’s LDP issued a white paper outlining strategies for Web3 and blockchain adoption, recommending adjustments in tax policies and exchange‑traded fund (ETF) approval frameworks.
In June of this year, the FSA proposed reclassifying crypto assets as traditional financial products. Expected to take effect from 2026, the new regime would subject cryptocurrencies to a new tax regime.
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Japan’s evolving regulations could make the country a more attractive destination for cryptocurrency firms.
Japan’s policy shift has already helped the country double its crypto adoption over the year leading up to September, according to Chainalysis’ APAC policy lead, Chengyi Ong.
Japan saw the strongest growth among the five leading markets in the Asia Pacific region, with on‑chain value received growing over 120% year‑on‑year in the 12 months to June 2025, according to an excerpt from Chainalysis’ 2025 Geography of Cryptocurrency Report.
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