The Financial Services Agency (FSA) in Japan has proposed a significant shift in crypto regulation. The agency’s proposal would move cryptocurrencies under the Financial Instruments and Exchange Act (FIEA), moving them away from the Payment Services Act. This aims to strengthen investor protection by aligning crypto oversight with securities regulation. The report cites several issues within the crypto space that resemble those traditionally addressed under the FIEA, suggesting it is a suitable regulatory framework. 12 million individual cryptocurrency exchange accounts in Japan and over 5 trillion yen ($33.7 billion) worth of user deposits further support the significance of crypto’s role in the Japanese economy.