Japan’s evolving crypto regulation framework shifts the base from the PSA to the FIEA, with the FSA spearheading a major transformation.

Under the plan, IEOs would require stricter disclosures, including core team details, third‑party code audits, and regulatory opinions under the FIEA regime.

Issuers must disclose identities and token issuance models, regardless of decentralization, reinforcing accountability in the Japanese crypto market.

Enforcement powers would expand to curb unregistered platforms and overseas or DEX‑like operators, with a clear stance against insider trading, mirroring MiCA.

Meanwhile, Tokyo is considering a unified 20% tax on crypto trading profits, indicating coordinated tax reform with regulatory updates.

The FSA also remains cautious on derivatives for overseas crypto ETFs, noting current underlying assets are not ideal for risk management.