Laser Digital gets Japan’s first crypto exchange approval in 4 years

Japanese financial services firm Laser Digital Japan has secured approval to operate as the nation's first crypto exchange in four years, according to a recent announcement. The company, a subsidiary of Nomura Group, has obtained registration to provide domestic liquidity before venturing into institutional crypto trading. This development comes as Japan's crypto market matures and institutional investors show growing interest in this asset class.

The authorization was granted by the Financial Services Agency (FSA), as indicated by a list released on Friday. The last platform to receive FSA approval was Binance Japan in October 2022. Jez Mohideen, co-founder and CEO of Laser Digital, expressed optimism about the new phase of maturity in Japan's crypto market, stating that it necessitates "trusted counterparties and infrastructure."

In July, Japan's parliament enacted revisions that classify crypto assets as financial assets under the Financial Instruments and Exchange Act (FIEA). These changes will reposition crypto transactions regulation away from the Payment Services Act (PSA), where digital assets are currently primarily considered payment instruments. They will also introduce insider trading rules and enhanced oversight for crypto businesses, with the provisions set to take effect within one year of the amendments' promulgation on July 23.

Japanese Finance Minister Satsuki Katayama expressed her intent to incorporate crypto under the same umbrella as traditional finance assets in January, aiming to ensure that citizens can benefit from digital and blockchain-based assets.