Japanese government approves crypto broker and stablecoin reform bill, easing regulatory restrictions

The Japanese government has approved a proposal to amend the Payment Services Act, aiming to reform the regulatory framework for cryptocurrency brokers and stablecoins. The bill has been submitted to the parliament for deliberation and is expected to be passed in the coming days. According to information released by the Financial Services Agency (FSA), the new regulations will allow cryptocurrency companies to operate as "intermediary businesses," meaning brokers will no longer need to apply for the same license as cryptocurrency exchanges and wallet operators.

The bill also provides greater flexibility in asset backing for stablecoin issuers, allowing them to use specific Japanese and U.S. government bonds as the endorsed assets for stablecoins, rather than the current requirement of a 1:1 cash deposit. However, only specific bonds with a remaining term of three months or less qualify, and the maximum bond support ratio must not exceed 50%, with the remaining portion still required to be held in a demand account.

For cryptocurrency brokers, the new regulations will not require them to meet financial requirements or anti-money laundering regulations, significantly lowering the market entry threshold. Brokers only need to prove that they do not directly handle client funds to obtain the new license. It has been reported that large Japanese companies including Mercari, SBI Securities, and Monex Securities have shown interest in broker business.