Japan’s FSA Eyes New Rules, Bank of England Seeks Public Consultation 

Japan’s regulator Financial Services Agency (FSA), is moving towards stricter regulations for crypto players. The new rules, if materialized, will require the Crypto Custodians and Service Providers to register with the regulator before they work with the exchanges. The regulations are currently under discussion. A working group under the Financial System Council reportedly discussed the matter on November 7. 

The tightening regulations in Japan are anticipated to have ripple effects globally, as governments and regulatory bodies across the globe are debating about bringing more clarity to crypto-related laws without compromising security. Japan also approved a stablecoin pilot project recently, while the Bank of England has published a consultation paper (CP) regarding the regulations for stablecoins in the country today, November 10. 

The Growing Crypto Market in Japan & Evolving Regulatory Space

According to Statista, the estimated annual growth rate (CAGR 2025-2026) of cryptocurrency in Japan is 3.44% and the number of participants in the cryptocurrency market in the country is projected to reach 18.69 million by 2026. Amid the growing market, the new risks are also proliferating.

One of the largest backlashes faced by the Japanese crypto market was the DMM Bitcoin hack back in 2024. In May 2024, the Japanese cryptocurrency exchange DMM faced a major breach worth $305 to $308 million at that time. With a loss of 4,502.9 BTC, it is one of the biggest thefts in the crypto market’s history. 

Following the discussions regarding the new regulations and rules, the FSA is reportedly planning to submit a report stipulating the amendments to the Financial Instruments and Exchange Act in 2026. Amid the evolving regulatory landscape, the Japanese administration has recently approved the stablecoin pilot project. 

Japan Approves First Stablecoin Pilot Project and Bank of England Launches Public Consultation

The yen-backed stablecoin, JPYC pilot project, is led by Japan’s leading banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group. 

The stablecoins are fast emerging as an integral part of the global economic narrative, as it is pegged to fiat currencies or real assets. Currently, the most popular stablecoin is USDT by Tether. With the U.S leading the bandwagon, the rest of the countries are following suit. The latest entrant to the race is Britain. 

The Bank of England has published a consultation paper (CP) stipulating its proposed regulatory regime for sterling-denominated systemic stablecoins today, November 10. According to the official press release, consultation is open to the public till 10 February 2026, and the feedback will be discussed later. The consultation paper broadly covers the details regarding the backing assets and holding Limits. 

Sarah Breeden, Deputy Governor for Financial Stability, said that the proposals were a pivotal step towards implementing the UK’s stablecoin regime in the upcoming year. She further added that their objective was to support innovation and build trust in that emerging form of money.

The latest development across the globe shows the growing significance of digital assets and the regulators’ attempt to bring more clarity to the same. It’s good news for the broader crypto market as the regulated market with clear boundaries boosts investor confidence. 

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