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Japan’s Financial Services Agency Plans Tougher Penalties for Unregistered Crypto Businesses

Japan’s Financial Services Agency Plans Tougher Penalties for Unregistered Crypto Businesses

According to Nikkei, Japan’s Financial Services Agency plans stricter criminal penalties and a legal shift to the Financial Instruments and Exchange Act, expanding enforcement tools against unauthorized crypto operators.

Fact Check
The information is sourced from Nikkei, Japan's most authoritative financial news outlet, and has been widely picked up by specialized crypto media like CoinPost. The details regarding the specific increase in penalties (3 to 10 years) and the legislative shift (Payment Services Act to FIEA) are consistent across sources.
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Summary

According to Nikkei, Japan’s Financial Services Agency plans to tighten enforcement against unregistered crypto businesses by raising the maximum criminal penalty to up to 10 years in prison. The agency also plans to move crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act, a change that would strengthen investor protection and give authorities broader powers, including forced investigations and asset seizures, against unauthorized operators.

Terms & Concepts
  • Financial Instruments and Exchange Act: Japan’s main financial markets law, used to regulate securities and provide stronger enforcement authority over market participants.
  • Payment Services Act: A Japanese law that governs payment-related businesses, including parts of the current regulatory framework for crypto assets.
  • Unregistered crypto businesses: Crypto firms operating without required regulatory approval, which can expose them to sanctions, investigations, asset seizures, fines, and criminal penalties.