Japan's Financial Services Agency establishes dedicated department for virtual assets and stablecoins

Japan will create a new department responsible for the management and supervision of stablecoins (digital assets whose value is linked to fiat currency) and virtual assets (cryptocurrencies). It is interpreted as moving into a race to speed up the integration of virtual assets into the regulatory framework.

On the 26th (Korean time), according to industry sources, Finance Minister Satsuki Katayama said at a press conference held after the cabinet meeting that she approved the Financial Services Agency's organizational restructuring plan.

The reorganization plan included the establishment of an 'Asset Management and Insurance Supervision Bureau' and the creation of a new 'Virtual Assets and Stablecoins Division.'

Finance Minister Katayama said, "The digital asset market is growing rapidly, so we will take steps to secure innovation, soundness, and user protection."

The Virtual Assets and Stablecoins Division will oversee virtual asset exchange registration and supervision, regulation of stablecoin issuance and management, market monitoring, and so on.