When working with Cryptocurrency Regulation, the body of laws and guidelines that govern digital assets, exchanges, and related services. Also known as crypto regulation, it determines how firms operate and protects investors.
One major piece of the puzzle is the Crypto Exchange, a platform that lets users trade cryptocurrencies for fiat or other tokens. The exchange’s ability to launch hinges on meeting the standards set by the Financial Services Agency, Japan’s regulator that oversees financial markets and enforces the Payment Services Act (PSA). In simple terms, Cryptocurrency Regulation encompasses crypto exchange licensing, the agency influences the rules, and the licensing process requires capital and asset segregation. Those three relationships form the core of compliance for any platform eyeing the Japanese market.
Japan’s PSA lays out clear checkpoints: a legal entity structure, minimum capital of ¥50 million, and strict segregation of customer assets from the firm’s own funds. Foreign subsidiaries must also follow local filing deadlines and undergo regular audits. Missing a deadline or mixing assets can trigger fines or even a shutdown, which is why a practical checklist is indispensable. The PSA also demands transparent governance, clear anti‑money‑laundering (AML) procedures, and a solid cybersecurity framework. Together, these elements create a compliance ecosystem where the Financial Services Agency guides the standards, crypto exchanges adapt their operations, and regulators monitor ongoing adherence.
Below you’ll find a curated set of articles that break down each requirement, offer step‑by‑step guides, and showcase real‑world pitfalls to avoid. Whether you’re just starting a new exchange or need to audit an existing operation, this collection gives you the actionable insight to stay on the right side of the law.
A practical guide to Japan's PSA registration for crypto exchanges, covering legal forms, capital, asset segregation, foreign subsidiary rules, timelines, and common pitfalls.