Japan's Financial Services Agency (FSA) plans to request approximately ¥40 billion ($270 million) in its initial fiscal 2027 budget proposal, local media including Kyodo News reported on Aug. 24. The request would be about 60% higher than the fiscal 2026 budget and the largest in the agency's history. It would fund an AI-based market surveillance and monitoring system, stronger oversight of crypto-asset service providers, a transition to post-quantum cryptography, and additional specialist staffing for cybersecurity and advanced AI-related risk responses. The proposal also includes measures to protect financial institutions from sophisticated attacks and deepfakes, improve threat-intelligence sharing, and help regional lenders advise small and midsized businesses on succession, management improvement and M&A. Approval remains uncertain as the Ministry of Finance reviews budget requests against fiscal constraints.