Japan’s financial regulator has approved its first new cryptocurrency exchange in four years, granting registration to Laser Digital Japan, the local unit of Nomura’s digital asset subsidiary. The Financial Services Agency completed the registration on 21 August, authorizing trading in bitcoin, ether, XRP, bitcoin cash, litecoin and shiba inu. The firm will initially provide liquidity to existing Japanese exchanges before expanding to institutional trading services.
The lengthy approval gap reflects Japan’s notoriously rigorous licensing process, which involves over 400 compliance checkpoints covering custody, capital adequacy, anti-money laundering and cybersecurity. Scrutiny intensified following FTX’s collapse, pushing many international operators to acquire existing licensees rather than pursue new registrations. Binance Japan was the previous addition in October 2022.
The timing is notable as Laser Digital registered under Japan’s current Payment Services Act framework just as parliament passed legislation reclassifying crypto as financial products under stricter securities-style regulation, expected to take effect around 2027.
FXnCO Insight
Nomura’s successful navigation of Japan’s demanding licensing regime signals growing institutional legitimacy for crypto services and may encourage other traditional finance players to pursue Japanese market entry before tighter regulations arrive.
Source: Finance Magnates