Japanese Senate Passes Major Crypto Brokerage Reform Bill

This move is expected to lower regulatory barriers for crypto intermediaries while strengthening consumer protections.

🇯🇵 Japan has approved a legal amendment that will give crypto brokerage firms new freedoms to operate in the country. #Japan #CryptoRegulations https://t.co/N6lRNTr9Hy

— Cryptonews.com (@cryptonews) June 9, 2025

The newly revised act introduces a distinct legal category for “intermediary businesses” in the crypto sector. Until now, crypto brokerages in Japan were required to obtain the same strict licenses as exchanges and wallet providers from the Financial Services Agency (FSA).

These requirements often proved burdensome, stifling innovation and limiting new entrants.

With the new legislation, intermediary businesses will face less stringent regulatory hurdles, making it easier for firms, especially those in gaming and Web3, to enter the crypto space. Lawmakers hope this will foster innovation and allow Japanese businesses to compete more effectively in the global digital finance market.

The bill also introduces new measures to protect consumers. Notably, it empowers the Prime Minister’s office to require crypto exchanges to hold a specified portion of their assets within Japan. This provision is a direct response to the 2022 collapse of FTX, which left FTX Japan users unable to access their funds because assets were held overseas.

In the event of bankruptcy, the government can now mandate that customer refunds are processed through approved guarantor institutions, such as trust banks. This aims to ensure that users can recover their assets even if an exchange fails to operate.

Japanese lawmakers describe the amendment as a necessary response to the rapid growth of digital finance. They believe the reforms will boost both customer protection and innovation. Industry observers believe the changes will likely encourage more major businesses, particularly in gaming, to explore opportunities in crypto and Web3.

The bill, which passed the lower house earlier this year with little opposition, is set to take effect in June 2026.

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