PANews reported on November 10th that, according to Nikkei, Japan's Financial Services Agency (FSA) is considering new regulations requiring digital asset custody and trading management service providers to register with the authorities before offering services, and restricting cryptocurrency exchanges to using only services from registered providers. This move aims to address security vulnerabilities in current regulations regarding third-party service providers and prevent losses due to system errors or hacker attacks.

The proposal was discussed at the Financial System Review Committee working group meeting on November 7, and a majority of members expressed their support. The proposal's background includes the 2024 incident where the DMM Bitcoin exchange lost approximately $312 million due to a security vulnerability in its outsourcing partner, Ginco.

The FSA plans to compile a report as soon as possible and submit an amendment to the Financial Instruments and Exchange Act during a regular Diet session in 2026. In addition, the FSA has recently accelerated the development of local stablecoin projects, including approving the first Japanese yen stablecoin, JPYC, and supporting stablecoin pilot projects by the three major banks.

Previous reports indicated that Japan's Financial Services Agency supported a stablecoin program jointly launched by the country's major banks .