The Financial Services Agency of Japan plans to introduce new regulations requiring cryptocurrency custody services to be registered

According to The Block, Japan's Financial Services Agency (FSA) is considering introducing a new regulatory framework that would require digital asset custodians and trading management service providers to register with the authorities before offering services to cryptocurrency exchanges.

According to Nikkei News, this issue was discussed at a Financial System Council working group meeting on November 7. The new regulations aim to fill existing regulatory gaps and prevent security incidents similar to the 2024 DMM Bitcoin hack, which resulted in losses of approximately $31.2 billion. The FSA plans to compile the discussion results and intends to submit an amendment to the Financial Instruments and Exchange Act during the regular Diet session in 2026.