Regulation · Regime · Japan · Primary legislation · Financial Services Agency (Japan)
Japan security token rules under the Financial Instruments and Exchange Act (2019 amendment)Updated 14 Oct 2026
Japan treats tokens that carry rights to profit distributions as securities under the Financial Instruments and Exchange Act. The 2019 amendments to the FIEA and the Payment Services Act, in force from May 2020, brought such tokens into securities regulation along with crypto derivatives and market-abuse rules, and form the basis for security token offerings in Japan.
In force · effective 1 May 2020
Key points
- Security tokens that generate income, such as through revenue distributions, are regulated as securities under the FIEA.[1]
- The 2020 implementing orders set private-placement conditions, annual securities report filing and exemption rules, and registration-statement disclosure for electronically recorded transferable rights (security tokens).[2]
- Financial instruments business operators handling security tokens must meet rules on business conduct, advertising, client information and how they manage clients' electronically recorded transferable rights.[2]
What it covers
Primary issuanceSecondary trading
Timeline
- 14 Jan 2020 · ConsultationFSA consults on the cabinet order and ministerial ordinances implementing the 2019 amendments (closed 13 Feb 2020; 398 comments).[2]
- 3 Apr 2020 · FinalImplementing cabinet order and ordinances promulgated.[2]
- 1 May 2020 · In force2019 amendments to the FIEA and Payment Services Act take effect, with their implementing rules.[2]
Deployments operating under it
| Deployment | Status | Assets | Use cases | Last reviewed |
|---|---|---|---|---|
| ibet for Fin security token network (BOOSTRY)Updated 18 Oct 2026 BOOSTRY | Live (scaled) | Reviewed 21d ago | ||
| Progmat security token platformUpdated 18 Oct 2026 Progmat | Live (scaled) | Reviewed 21d ago | ||
| START security token market (Osaka Digital Exchange)Updated 8 Nov 2026 Osaka Digital Exchange | Live (limited) | Reviewed today | ||
| MUFG domestic tokenised investment trust pilot (Progmat)New Progmat | Pilot | Reviewed 13d ago | ||
| Project Trinity stablecoin DvP for security token secondary tradesNew Progmat | Pilot | Reviewed 13d ago |
Likely relevant to
| Deployment | Status | Assets | Use cases | Last reviewed |
|---|---|---|---|---|
| DCJPY tokenised yen deposits (DeCurret DCP network)Updated 15 Oct 2026 DeCurret DCP | Live (limited) | Reviewed 13d ago | ||
| Nomura, Daiwa and megabank groups' blockchain transfer of book-entry securities proof of conceptNew Nomura | Announced | Reviewed 13d ago | ||
| MUFG, SMBC and Mizuho jointly issued yen stablecoinUpdated 28 Oct 2026 Progmat | Proof of concept | Reviewed 13d ago | ||
| JPYC yen stablecoinUpdated 7 Nov 2026 JPYC Inc. | Live (limited) | Reviewed 21d ago | ||
| JPYSC trust-type yen stablecoin (SBI Shinsei Trust & Banking)Updated 7 Nov 2026 SBI Shinsei Trust & Banking | Live (limited) | Reviewed 21d ago |
Sources
- [1]Discussion Paper: Examination of the Regulatory Systems Related to Cryptoassets (provisional translation) — Financial Services Agency, 10 Apr 2025. Accessed 14 Oct 2026.A
- [2]Results of public comment on the cabinet order and ministerial ordinances for the 2019 Payment Services Act etc. amendments — Financial Services Agency, 3 Apr 2020. Accessed 14 Oct 2026. In Japanese; our summary is translated.A