Japan’s Financial Services Agency to discuss legislative amendments this month

Japan’s Financial Services Agency is preparing to take up legislative amendments at its Financial System Council meeting later this month, a move that could accelerate the country’s ongoing overhaul of how digital assets are regulated.

The council serves as the FSA’s primary advisory body on financial system policy, and its recommendations have historically served as the blueprint for bills introduced in the Diet, Japan’s national legislature.

The crypto reclassification push

In February 2026, the FSA’s Working Group on Crypto-asset Systems issued a report recommending that certain digital asset regulations be shifted from the Payment Services Act to the Financial Instruments and Exchange Act.

The Payment Services Act treats crypto more like a tool for transferring value. The Financial Instruments and Exchange Act is the framework that governs securities and investment products. Moving crypto oversight to the FIEA would essentially mean Japan starts treating certain digital assets more like stocks or bonds from a regulatory perspective.

Separately, amendments to the Payment Services Act focusing on electronic payment instruments and stablecoins have been set for phased implementation around June 2026.

How the council process works

The Financial System Council doesn’t write laws directly. Instead, it reviews policy proposals, hears from working groups and industry stakeholders, and produces recommendations that the FSA then uses to draft legislation for the Diet.

Implementation timelines after passage can stretch further, with delays ranging from several months to over a year between a law’s passage and its effective date.

No specific meeting date or detailed agenda has been disclosed as of early August 2026.

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