The Japanese Senate passed an amendment to the Funds Settlement Act: relaxing the threshold for crypto intermediaries and strengthening user asset protection

According to reports, the Japanese Senate recently officially passed the amendment to the Funds Settlement Act, bringing major institutional changes to the cryptocurrency industry. The amendment was submitted to the National Assembly in March this year, aiming to adapt to the trend of digitalization of financial services, taking into account the protection of user rights and interests and the innovative development of the industry.

A highlight of the amendment is the introduction of a new category of "intermediary business", which allows companies to provide matching services without registering as traditional crypto asset exchanges. This move means that the market entry threshold will be significantly lowered, encouraging more companies, especially fintech startups, to participate in the construction and innovation of cryptocurrency and blockchain financial ecology. The industry generally believes that this will stimulate the vitality of Japan's local Web3 and encryption services.

At the same time, the amendment also strengthens the regulatory level's control over the security of user assets. The new law adds a "domestic retention order" clause, which gives the government the legal power to require the platform to retain some user assets in Japan under certain circumstances. This measure is seen as a direct response to the risk of asset outflow caused by the FTX bankruptcy incident, aiming to prevent similar crises from happening again and enhance user confidence.

According to the bill arrangement, the new system will be officially implemented within one year from the date of publication, leaving sufficient adjustment time for various institutions and platforms. This amendment marks another positive exploration of Japan in the global crypto regulatory landscape, which not only shows an open attitude towards financial technology innovation, but also highlights the high attention paid to user protection and systemic risk prevention.

In the future, as the regulations are officially implemented, Japan's crypto industry is expected to welcome more compliant participants and accelerate the construction of a safe, transparent and competitive digital asset market.