Fintech Observation: FSA introduces new crypto custody license, bans fund escrow + simplifies registration, Web2 giants' entry countdown

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The Financial Services Agency of Japan introduces the registration system for cryptocurrency asset service intermediaries, expected to be implemented in 2026.
The Financial Services Agency of Japan disclosed during an online briefing on May 15 that after amending the "Fund Settlement Act," a new cryptocurrency asset intermediary industry system and registration process have been established, expected to be implemented in early June 2026.
This system is aimed at businesses that are entrusted by cryptocurrency exchanges or stablecoin trading operators and only provide buying, selling, or exchange mediation services, prohibiting intermediaries from holding user assets.
Regulatory requirements are lower than those for exchange licenses, which may encourage companies in gaming and e-commerce sectors to participate in cryptocurrency asset services and traffic diversion.
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