General information only. CryptoRegHub provides summaries for informational purposes and does not constitute legal or compliance advice. Always verify with official sources and consult qualified legal counsel before making compliance decisions.

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Verify recommended:14 April 2026·Source →

Japan Payment Services Act — Crypto Asset Exchange Service Framework

JapanCrypto Exchanges/CASPsCustody/WalletsAML/Travel RuleStablecoinsExchanges / CEX / DEXCustodians / Wallet ProvidersStablecoin IssuersPayment Service ProvidersBrokers / AdvisersFSABitcoin / PoW assetsEthereum / PoS assetsStablecoinsE-money tokensUtility tokensRegistrationKYC / AMLCustody / SegregationTravel Rule complianceDisclosure / WhitepaperMarket conduct rulesRegulatory reportingConsumer protection
In Force● High risk
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General information only — not legal advice

CryptoRegHub provides plain-English summaries of crypto regulations for informational purposes only. This does not constitute legal, compliance, or financial advice. Regulations change frequently — always verify information with official sources and consult qualified legal counsel before making any compliance decisions.

Japan has one of the world's most mature crypto regulatory frameworks, built through a series of PSA amendments since 2017. Crypto assets ('crypto assets' replaced 'virtual currency' in 2019) are regulated under the Payment Services Act as payment instruments. Any entity providing crypto asset exchange services (CAES) — including buying/selling, exchanging, intermediating, or custodying crypto assets — must register with the FSA as a Crypto Asset Exchange Service Provider (CAESP). The self-regulatory body JVCEA plays a key role: new tokens cannot be listed by a CAESP without JVCEA approval. The stablecoin (Electronic Payment Instrument / EPI) framework, introduced in June 2022 and in force from June 2023, creates a separate regime for fiat-pegged tokens — only banks, fund transfer service providers, and trust companies may issue them. The PSA Amendment Act 2025, enacted May 2025 and expected in force by June 2026, introduces a lighter intermediary registration for pure brokers.

Who does it apply to?

Applies to any business providing CAES in Japan, including: buying and selling crypto assets, exchanging one crypto asset for another, intermediating these activities, managing customer money in connection with CAES, and managing customer crypto assets on their behalf (custody). Foreign exchanges must also register if serving Japanese customers. Electronic Payment Instrument Exchange Service Providers (EPIESPs) — stablecoin issuers and distributors — are covered by a separate EPI framework.

Key requirements

Key requirements for CAESPs: (1) FSA registration — process takes up to 6 months; self-regulatory JVCEA membership required. (2) At least 95% of user crypto assets held in offline (cold) wallets. (3) User assets must be segregated from company assets and audited annually by a registered accountant. (4) New crypto assets require advance notification to FSA and JVCEA approval before listing. (5) Full KYC at account opening; AML/CFT programme required under the Act on Prevention of Transfer of Criminal Proceeds. (6) Travel Rule: applies to transfers of crypto assets, implemented through 2024 APTCP amendments. (7) Advertising and solicitation regulations. (8) Prohibition on unfair trading practices, price manipulation.

Obligation types

Registration
Requirement to register with a regulator
KYC / AML
Know Your Customer and Anti-Money Laundering obligations
Custody / Segregation
Rules on how customer assets must be held
Travel Rule compliance
Sharing originator/beneficiary data on transfers
Disclosure / Whitepaper
Mandatory disclosures to users or markets
Market conduct rules
Rules against manipulation, insider dealing etc.
Regulatory reporting
Ongoing reporting to regulators
Consumer protection
Rules protecting retail customers

Penalties & fines

Criminal — unregistered CAES
Operating crypto asset exchange services without FSA registration
Max: Imprisonment up to 3 years and/or fine up to JPY 3,000,000 (rising to 10 years / JPY 10,000,000 under proposed FIEA reclassification)
Applies to: Unregistered crypto exchanges
Business improvement order
FSA may issue business improvement orders or suspend operations for regulatory breaches
Max: Suspension of business operations
Applies to: Registered CAESPs

Implementation timeline

May 2016
PSA amended — first crypto regulation enacted (Act No. 62 of 2016)
Japan became one of the first countries to regulate crypto exchanges. Registration requirement introduced.
Apr 2017DEADLINE
Registration requirement for crypto exchanges entered into force
All crypto exchange operators must register with FSA.
May 2019
PSA and FIEA further amended (Act No. 28 of 2019)
"Virtual currency" renamed "crypto asset". Cold storage rules, derivatives regulation, ICO rules, market manipulation prohibitions added.
May 2020
2019 amendments entered into force
Jun 2022
PSA amended — stablecoin (EPI) framework enacted
Fiat-pegged stablecoins classified as electronic payment instruments. Only banks and licensed entities may issue.
Jun 2023DEADLINE
EPI stablecoin framework entered into force; Travel Rule implemented
Stablecoin issuers must register under EPI framework. Travel Rule fully applied to crypto asset transfers.
May 2025
PSA Amendment Act 2025 enacted — lighter intermediary registration introduced
New framework for pure crypto asset intermediaries who do not take custody of client assets.
Jun 2026DEADLINE
PSA Amendment Act 2025 expected to enter into force

Official sources

JVCEA self-regulatory body
https://jvcea.or.jp/english/
→
FSA Japan — Discussion Paper on Regulatory Systems for Cryptoassets (2025)
https://www.fsa.go.jp/en/news/2025/20250410_2/01.pdf
→
FSA discussion paper on crypto regulatory reform (April 2025)
https://www.fsa.go.jp/en/news/2025/20250410_2/01.pdf
→

Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.

Updates & news

10 April 2026
Cabinet approved FIEA amendment — crypto to be reclassified as financial instruments
Japan's cabinet approved a landmark bill to reclassify crypto assets under the FIEA, treating them as investment products like stocks and bonds. Penalties to increase substantially if passed by the Diet. Expected to take effect FY2027.
1 May 2025
PSA Amendment Act 2025 enacted — lighter intermediary category introduced
Pure intermediaries who do not take custody of client assets may now register under a lighter framework. Expected in force by June 2026.

Frequently asked questions

At a glance
JurisdictionJapan
RegulatorFSA
Official namePayment Services Act (Act No. 59 of 2009) as amended — Crypto Asset Exchange Services provisions
StatusIn Force
Enacted25 May 2016
Effective from1 Apr 2017
Last verified14 Apr 2026
Penalty severity
● High risk

Large fines, licence revocation, or criminal referral risk

Regulatory bodies
FSA
Financial Services Agency Japan
Official website →
Disclaimer

This summary is for general informational purposes only and does not constitute legal advice. Always verify with official sources and consult qualified legal counsel.