Japan's Financial Services Agency has judged its digital finance policy, including an overhaul of cryptocurrency regulation and expanded use of stablecoins, as having met its goals in its self-assessment.

CoinPost reported on Sept. 5 that the agency, in a performance evaluation report covering July 2025 to June 2026, gave its top grade of A (goals met) to a category titled "strategic response to environmental changes in a new society premised on digital."

A key achievement cited was a system overhaul that moves regulation of cryptocurrency trading from the Payment Services Act to the Financial Instruments and Exchange Act framework. The agency submitted related legislation to parliament in April, and the bill was finally enacted on July 15. By regulating cryptocurrencies as financial instruments, it strengthened investor protection and laid the groundwork for applying rules on insider trading and other unfair trading.

The tax regime is also expected to change significantly. Cryptocurrency income is currently subject to comprehensive taxation of up to 55 percent, combining income tax and local resident tax. A plan is being pursued to apply about 20 percent separate self-assessed taxation to certain cryptocurrency transactions and allow losses to be carried forward for deductions for 3 years. This is conditional on the enforcement of the revised Financial Instruments and Exchange Act. If enforcement is in fiscal 2027, the tax changes are expected to apply from January 2028.

The stablecoin policy was also rated as an achievement. The agency put into force in June a revised Payment Services Act that eases regulations on the management and operation of reserve assets for trust-type stablecoins, and created a new Payment Innovation Project (PIP). Through it, it is supporting a joint proof-of-concept by three megabanks, including Mizuho Bank, Mitsubishi UFJ Bank and Sumitomo Mitsui Banking Corp, to issue a yen stablecoin.

It has also begun supporting proof-of-concept efforts to process blockchain-based securities transfers and stablecoin payments at the same time, or to smooth interbank transfers of tokenised deposits. The agency's policy is to continue pursuing innovation in digital finance alongside user protection in cooperation with private-sector operators.