The Japan Financial Services Agency (FSA) is planning to significantly tighten regulations on crypto lending by 2026. This move, expected to boost consumer protection and compliance, will bring crypto lending under the Financial Instruments and Exchange Act (FIEA). Major exchanges like bitFlyer and Coincheck are already preparing for these changes by implementing new compliance frameworks. The FSA’s actions follow Prime Minister’s pro-Web3 policies aimed at achieving regulatory clarity within Japan’s crypto sector. 2026 is a key year as this legislation aims to reshape the crypto landscape in Japan, potentially impacting crypto lending and investment strategies. While concrete details are still emerging, industry experts believe this shift will influence liquidity in DeFi pools.