Japan's Financial Services Agency plans new regulations requiring crypto custody services to register

Jinse Finance reported that Japan's Financial Services Agency (FSA) is considering introducing a new regulatory framework that would require digital asset custodians and transaction management service providers to register with the authorities before they can offer services to crypto exchanges. According to a report by Nikkei, this topic was discussed at the 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 3.12 billions USD. The FSA plans to consolidate the discussion results and intends to submit an amendment to the Financial Instruments and Exchange Act during the regular Diet session in 2026.