Japanese financial authorities are establishing a dedicated organization to oversee cryptocurrencies and stablecoins, elevating digital assets to a core area of institutional finance. Amidst the intensifying global competition to regulate stablecoins, Japan is also proactively restructuring its regulatory framework.
According to Kyodo News on the 26th, Finance Minister Satsuki Katayama announced at a press conference following the Cabinet meeting that day that she had approved the Financial Services Agency (FSA) reorganization plan. Under this reorganization, the FSA plans to launch a new department in charge of crypto assets and stablecoins, targeting the summer of next year.
The core of the reorganization is the functional division of the existing supervisory system. A new "Asset Management and Insurance Supervision Bureau" will be established, responsible for insurance company supervision and asset management policies, and a dedicated department for crypto assets and stablecoins will be placed under this new bureau. The current "Supervision Bureau" will be reorganized into a "Banking and Securities Supervision Bureau," focusing on banks and securities firms.
This measure clearly demonstrates the Japanese government's policy direction of no longer viewing digital assets as peripheral financial assets. This is interpreted as reflecting the judgment that, especially with stablecoins rapidly integrating with real-world financial infrastructure, such as payments and remittances, continuous supervision and policy design through a dedicated organization are necessary.
Japan has already established a relatively clear institutional framework centered on yen-pegged stablecoins and trust-based structures. With the establishment of a dedicated department, the intensity of cryptocurrency exchange regulation, stablecoin issuance and distribution management, and oversight of global businesses is likely to intensify.
The market is interpreting this reorganization as a signal that Japanese financial authorities are beginning to treat cryptocurrencies as "institutionalized financial assets," rather than "managed risks." With the US, Europe, and Asian countries competing for leadership in stablecoin regulation, Japan's reorganization is expected to be a crucial turning point in the race to become Asia's financial hub.
