The Japan Financial Services Agency has published the results of public comments and promulgated the Cabinet Order and Cabinet Office Ordinance needed to implement the 2025 amendments to the Payment Services Act. The package sets the detailed regulatory framework for electronic payment instruments, crypto asset businesses, fund transfer businesses, and the related activities that banks, insurance companies, and their subsidiaries may conduct. The measures specify the assets that electronic payment instruments business operators and crypto asset exchange operators can be ordered to hold domestically. They also set conditions for managing assets backed by specific trust beneficiary rights, including eligible assets such as certain government bonds and early-terminable time deposits, allocation caps, and safeguards against principal impairment. For the newly created intermediaries for electronic payment instruments and crypto asset services, the rules establish registration filing requirements, user disclosure and explanation duties, prohibited acts, user protection measures, and accounting document requirements. For fund transfer businesses, the package defines cross-border collection agency services that fall outside foreign exchange transaction regulations, sets the scope of qualified performance guarantors and contract terms for new asset preservation methods, and permits Type 1 fund transfer service providers to assume foreign exchange transaction debts for up to two months if all protected user funds are preserved under the new methods and prompt, reliable repayment arrangements are in place. The agency received 259 comments from 62 individuals and organizations. The amended law, the related orders and ordinances, and accompanying administrative guidelines will take effect from 1 June 2026, with some provisions taking effect on promulgation.

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