Overview
- The Financial Services Agency is developing rules that would force third-party custody and trading system providers to register before contracting with crypto exchanges.
- Under the proposal, exchanges would be required to use only systems supplied by entities on the regulator’s register.
- A Financial System Council working group discussed the plan on November 7, with most members reported to support the pre-registration approach.
- The agency intends to compile a formal report and submit amendments to the Financial Instruments and Exchange Act during the 2026 ordinary Diet session.
- The push sits alongside the FSA’s digital finance agenda, which includes approval of the JPYC yen-backed stablecoin and support for a pilot with MUFG, SMBC, and Mizuho.