Japan’s Financial Agency Plans New Crypto Department for 2026

Japan’s Financial Agency Plans New Crypto Department for 2026

Japan’s Financial Services Agency plans to establish a Cryptocurrency and Innovation Department in fiscal year 2026, allocating ¥25 billion, aiming to enhance regulatory oversight.

The new department signifies Japan’s commitment to advancing financial innovation, potentially impacting global cryptocurrency markets and fostering technological growth in blockchain, AI, and fintech sectors.

The Japanese Financial Services Agency will create a new Cryptocurrency and Innovation Department by 2026. An estimated ¥25 billion has been set aside for the restructure, indicating a focus on integrating and regulating new technologies.

The FSA’s reorganization will transform the current Cryptocurrency and Innovation Advisory Office into a department within a newly proposed bureau. This shift highlights the country’s commitment to incorporating technology in its financial regulatory framework. As stated in the Financial Services Agency (FSA) Official Statement , “the need to utilize new digital technologies such as fintech, cryptocurrency trading, and artificial intelligence to enhance the ability to respond to changes in financial services” is a driving factor.

Changes are predicted to impact the cryptocurrency industry , particularly affecting registered exchanges and assets. Enhanced oversight and potential regulations could improve market stability and increase institution-level interest in digital assets.

Financial and regulatory implications are significant. The FSA’s budget earmarked for this department emphasizes the government’s interest in fintech and crypto. This could drive developments in AI, blockchain, and digital currency market infrastructure.

The 2026 initiative may lead to adjustments in Japan’s cryptocurrency oversight policies. Historical trends show proactive steps in crypto legislation, suggesting improved regulatory clarity. The department may encourage innovation, impacting both existing and emerging crypto markets globally.