Japan Moves Crypto Oversight From Payments Law to Securities Regulation
Japanese regulators announced a planned reclassification of many crypto activities from the Payment Services Act to securities law, a move that will impose stricter disclosure and registration requirements on token issuers and initial exchange offerings (IEOs). The shift signals tougher oversight and a broader interpretation of which digital assets qualify as securities, with authorities warning they will step up enforcement against unregistered trading platforms.
The change matters because it raises compliance costs for exchanges and projects operating in Japan and could prompt delistings or migration to friendlier jurisdictions. Investors may gain stronger disclosure protections, but the near-term effect could be reduced liquidity and fewer token launches. The decision from one of Asia’s largest crypto markets also sets a regulatory benchmark that other jurisdictions may follow, increasing the likelihood of a more harmonized — and stricter — global approach to crypto supervision.