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Japan’s Financial Regulator Moves to Tighten Rules on Crypto Lending

Japan’s Financial Regulator Moves to Tighten Rules on Crypto Lending

Japan’s Financial Services Agency will require regular reports from crypto issuers and classify 105 tokens as financial instruments, expanding oversight alongside proposed crypto lending reforms.

Fact Check
The evidence strongly and consistently supports the statement. Multiple high-authority Japanese financial and crypto news outlets report that Japan's Financial Services Agency (FSA) is actively discussing and considering proposals to strengthen regulations on crypto lending. The core of this action, as detailed in several sources, is the plan to move crypto lending services from the purview of the Payment Services Act to the more comprehensive and stringent Financial Instruments and Exchange Act (FIEA). This specific proposed change is a clear indicator of regulatory tightening.The claim is corroborated by various types of sources: mainstream news aggregators, specialized crypto media, an analysis from a crypto lending platform, and a social media post from a relevant industry editor. Furthermore, a legal update from a major law firm and reports on tightening custody rules provide a broader context of increased regulatory scrutiny by the FSA on the entire digital asset sector, making the specific action on lending highly credible. There is no contradictory evidence among the provided sources; the only irrelevant sources are generic corporate homepages.
Summary

Japan’s Financial Services Agency (FSA) plans to mandate regular disclosure from cryptocurrency issuers raising funds, including reports on asset holdings and issuance plans. On January 15, the agency also moved to classify 105 tokens traded on domestic exchanges as financial instruments under new rules. These measures accompany earlier proposals to bring cryptocurrency lending under the Financial Instruments and Exchange Act with strict asset safety controls, risk disclosures, and limits on Initial Exchange Offerings (IEOs). Together, they reflect a broader push to improve transparency, strengthen consumer protections, and align crypto-related activities with traditional financial standards.

Terms & Concepts
  • Financial Services Agency (FSA): Japan’s government body overseeing banking, securities, insurance, and other financial services.
  • Financial Instruments and Exchange Act: Japanese law regulating securities trading, exchange operations, and other financial activities.
  • Initial Exchange Offering (IEO): A fundraising method where cryptocurrency exchanges host token sales on behalf of project teams.