Japan Financial Services Agency accelerates 'Web3 regulation'... leading stablecoin institutionalization [BLS Tokyo 2025]

Blockchain Leaders Summit Tokyo 2025

Japan Financial Services Agency proposes clear Web3 regulations

"Will create a sound capital management environment"

Japanese industry: "Web3 environment greatly improved"

Global blockchain venture capital firm Hashed, co-hosted the 'Blockchain Leaders Summit Tokyo 2025 (BLS Tokyo 2025)' with Japanese leading venture capital firm B Dash Ventures, which concluded successfully on the 27th.

Hundreds of Web3 industry stakeholders flocked to the venue, and speakers on the podium included Masao Shimazaki, Deputy Director of the Japan Financial Services Agency, Caroline Pham, Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), and David Katz, Vice President of Circle. They unanimously emphasized the importance of regulation and formed a consensus that clear regulation drives Web3 innovation.

The driving force of Web3 innovation is setting regulations... Japan FSA speeds up

David Katz, Vice President of Circle, who took the podium that day, said, "The fundamental reason the Web3 ecosystem is growing explosively is the establishment of regulation and asset classification systems. When the government defines standards, market confusion decreases and new opportunities arise," adding, "Regulation does not suppress innovation but rather promotes it."

He also evaluated that Japan is moving the fastest among major Asian countries. He said, "Asia has now entered the 'age of stablecoin awakening'," adding, "Countries are competitively preparing regulatory proposals. Japan revised the Payment Services Act years ago and early on began institutionalizing stablecoins."

In fact, Japan is considered one of the leading countries in the institutionalization and adoption of stablecoins. The Japan FSA plans to register fintech company JPYC as a money transfer business this month and approve the first yen-based stablecoin 'JPYC.'

The FSA intends to further accelerate preparations for Web3 regulations. Masao Shimazaki, Deputy Director of the FSA, said, "We promoted public consultation on Web3-related regulations and published a discussion document in April," adding, "The goal is not simply to tighten regulation but to create a sound capital management environment."

Deputy Director Shimazaki explained, "As virtual assets expand from payment instruments to investment instruments, we are reexamining the regulatory framework," and said, "We plan to review ▲ strengthening white paper disclosure systems ▲ responding to unregistered overseas firms ▲ blocking inappropriate investment advice ▲ and classifying and examining fair price formation."

"Japan's Web3 industry environment has greatly improved in a few years"

Japanese Web3 operators also feel the change. Hiroya Yamada, founder of YOUR RIGHTS, whom we met at the venue, said, "Two to three years ago, it was even difficult to enter the business," adding, "But recently the Japanese government and the FSA have presented clear standards, and the environment has greatly improved. With definite guidelines, doing business has become easier than before." He said he is preparing an NFT business through crowdfunding.

Natsumi Aoyama, DAO community manager of NOT A HOTEL, said, "Compared to when I started the business five years ago, we can now operate based on clearer rules," adding, "It seems the period of uncertainty and stagnation has passed." Another participant at the venue said, "Whether Web2 or Web3, when an industry grows it inevitably enters the formal system," adding, "Clear regulation is a safety net that gives trust to both operators and customers."

Japan's financial sector is also quickening its steps, using regulatory clarification as a stepping stone. Mitsui Sumitomo Financial Group (SMFG) is simultaneously researching digital currencies such as stablecoins, tokenized deposits, and CBDC while expanding payment infrastructure pilots. Hiromitsu Shimorisa, team leader at SMFG, said, "Progress on CBDC is slow, and tokenized deposits place a heavy load on IT systems," adding, "At this point, the fastest means to spread is stablecoins."

Densan System has also begun full-scale construction of blockchain payment infrastructure. Hiroyuki Kamata, Senior Executive, said, "As paper-based payments decrease, blockchain and stablecoins are emerging as new payment methods," adding, "We will build infrastructure that leads to real consumer use."

Sony Bank is also actively moving following regulatory clarification. Kaya Kanamori, Head of DX at Sony Bank, said in an interview with Bloomingbit, "Recently the FSA and the Japanese government have actively supported Web3 expansion, and the regulatory environment is much clearer than in the past," adding, "As a favorable environment continues, many operators who want to do similar work are contacting us." She added, "We are conducting various NFT-related initiatives in cooperation with the Sony Group. As regulation progresses further, we expect our business to expand."

Tokyo=Du-hyun Hwang, Bloomingbit reporter cow5361@bloomingbit.io