Japan's FSA agency will establish a new bureau for cryptocurrency and digital finance.

The Financial Services Agency of Japan (FSA) will undergo a major restructuring in fiscal year 2026, establishing a new bureau to oversee insurance, asset management, and emerging financial services, including digital assets. This move comes after several scandals in the insurance industry such as data leaks and fraudulent transactions, aimed at restoring public trust and tightening governance.

The current Financial Supervisory Authority will be renamed to "Banking and Securities Supervisory Authority," while the new authority – temporarily called "Asset Management and Insurance Supervisory Authority" – will merge insurance supervision and asset management. Additionally, the FSA will supervise local credit institutions following the lending violations at Iwaki Shinkin Bank.

The FSA is also planning to establish a regulatory framework for digital assets, creating guidelines for cryptocurrencies and digital finance, both to protect investors and to promote innovation, aiming to make Japan a leading digital financial center in Asia.