Japan Cracks Down: Stricter Regulations Coming for Third-Party Crypto Providers

Tokyo tightens the screws—crypto middlemen face heightened scrutiny as regulators aim to curb systemic risks.

The Regulatory Hammer Falls

Japan's Financial Services Agency (FSA) isn't playing nice anymore. Third-party crypto service providers—think wallet operators, custody platforms, and payment processors—now face stricter oversight. No more shadowy backroom deals; the FSA wants everything above board.

Why Now?

After a string of high-profile exchange collapses and 'creative' accounting scandals, regulators are done with leniency. The move aligns with global trends but puts Japan ahead of the curve in Asia. Expect more paperwork, audits, and—of course—fees.

The Finance Jab

Because nothing says 'trust us' like a government stepping in to babysit an industry built on bypassing governments.

Japan’s Financial Services Agency (FSA) is preparing new regulations that would introduce a prior notification system for companies that provide management systems to crypto exchanges. The proposal, discussed by a working group under the Financial System Council on November 7, aims to strengthen oversight of third-party service providers that handle exchange operations, according to a report from Nikkei.

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