{ "jurisdiction_id": "JP", "jurisdiction": "Japan", "url": "https://payments.gi/jurisdictions/japan/", "generator": "render_jid v13.3.0", "date_modified": "2026-08-11", "schema_version": "world-payments-v1", "counts": { "modules": 14, "sourced_findings": 62, "source_register": 82 }, "modules": [ { "code": "W1a", "name": "Licensing, Authorisation & Market Access", "confidence": "Confirmed", "moved_this_cycle": true, "url": "https://payments.gi/jurisdictions/japan/#w1a-licensing-authorisation-market-access", "standing_position": "Japan's core non-bank payments/crypto statute is the Payment Services Act (PSA, Act No. 59 of 2009). A major 2025 amendment package took operational effect 2026-06-13. The FIEA/PSA amendment reclassifying crypto assets as financial instruments received final Diet approval 2026-07-15, moving core crypto-asset oversight into the securities-style FIEA framework, with full effect targeted fiscal 2027.", "findings": [ { "finding": null, "instrument_type": "statute", "source": "https://www.japaneselawtranslation.go.jp/en/laws/view/3965/en", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_guide", "source": "https://practiceguides.chambers.com/practice-guides/financial-services-regulation-2025/japan/trends-and-developments", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "law_firm_analysis", "source": "https://www.mofo.com/resources/insights/200715-reforms-japanese-regulations.html", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "law_firm_analysis", "source": "https://www.jonesday.com/en/insights/2021/05/japans-amended-payment-services-act-could-prompt-more-nonbank-entries-into-traditional-banking-services", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://www.nium.com/blog/how-japan-is-opening-payments-for-cross-border-business", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W1b", "name": "Conduct, Safeguarding & Financial Promotions", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w1b-conduct-safeguarding-financial-promotions", "standing_position": "Safeguarding for non-bank FTSPs is achieved primarily through a Performance Security Deposit (cash deposit with the Legal Affairs Bureau), with bank performance bonds and trust arrangements as alternatives; crypto/EPI custody requires segregation. The FSA supervises conduct via its Comprehensive Supervision Guidelines and the Guideline for Supervision of Funds Transfer Service Providers, which embed AML/CFT and user-protection expectations. Stablecoin/crypto intermediaries face explicit disclosure, explanation and prohibited-conduct rules under the 2025 reforms.", "findings": [ { "finding": null, "instrument_type": "law_firm_analysis", "source": "https://www.mofo.com/resources/insights/200715-reforms-japanese-regulations.html", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_guideline", "source": "https://www.fsa.go.jp/common/law/guide/kaisya/e014.pdf", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_news", "source": "https://www.mexc.com/news/1109792", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_guide", "source": "https://practiceguides.chambers.com/practice-guides/financial-services-regulation-2025/japan/trends-and-developments", "source_url": null, "source_tier": "2", "retrieved_at": null } ] }, { "code": "W2", "name": "Stablecoins & Digital Money", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w2-stablecoins-digital-money", "standing_position": "Fiat-pegged par-redeemable stablecoins are EPIs under PSA Art 2(5) (effective June 2023); issuance limited to banks, trust companies and registered FTSPs. Act No. 66 of 2025 (June 2026 implementation) relaxes trust-type reserves to JGB/US bonds and early-terminable deposits and codifies domestic-asset-holding orders. JPYC is the first licensed yen EPI issuer (live Oct 2025); SBI distributes USDC.", "findings": [ { "finding": null, "instrument_type": "regime_summary", "source": "https://www.plasma.to/learn/tools/stablecoin-regulation-map/japan", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_guide", "source": "https://practiceguides.chambers.com/practice-guides/fintech-2025/japan/trends-and-developments", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "law_firm_analysis", "source": "https://law.asia/japan-crypto-stablecoin-regulations-2025/", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_consultation", "source": "https://www.theblock.co/post/387171/japan-bonds-stablecoin-reserves-consultation", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://www.blackboxjp.com/stories/japans-stablecoin-landscape-regulation-innovation-and-the-road-ahead-part-2-2", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W3", "name": "Operational Resilience & Critical Infrastructure", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w3-operational-resilience-critical-infrastructure", "standing_position": "Operational resilience for the financial sector is delivered through the FSA's Comprehensive Supervision Guidelines for Major Banks (which embed operational-resilience expectations) referencing the Guidelines on Cybersecurity for the Finance Sector (published Oct 2024), plus the FISC Security Guidelines (13th edition, March 2025). Financial institutions in funds settlement are designated critical infrastructure under the Cybersecurity Basic Act. The BOJ co-supervises FMI/operational resilience and runs threat-led penetration testing. A draft amendment to the SMB Comprehensive Guidelines was issued 8 December 2025 (comments to 13 January 2026).", "findings": [ { "finding": null, "instrument_type": "regulator_guideline", "source": "https://www.fsa.go.jp/common/law/cybersecurity_guideline_en.pdf", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_guide", "source": "https://practiceguides.chambers.com/practice-guides/cybersecurity-2026/japan", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "vendor_summary", "source": "https://cpl.thalesgroup.com/compliance/apac/fisc-security-guidelines-japan-financial-institutions", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "fsap_assessment", "source": "https://www.elibrary.imf.org/view/journals/002/2024/113/article-A001-en.xml", "source_url": null, "source_tier": "1", "retrieved_at": null } ] }, { "code": "W4", "name": "Scheme & Network Compliance", "confidence": "High", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w4-scheme-network-compliance", "standing_position": "Card acceptance is dominated by Visa, Mastercard and the domestic JCB (Japan Credit Bureau), with Mitsui Sumitomo Card and JCB as major domestic players. The QR/code-payments layer is governed by the JPQR unified-code standard (introduced to consolidate competing wallet codes). Credit-card issuing and merchant acquiring fall under the Installment Sales Act in addition to the PSA. 3D Secure (3DS) is widely enforced for card-not-present and recurring transactions to reduce fraud.", "findings": [ { "finding": null, "instrument_type": "regulator_guide", "source": "https://practiceguides.chambers.com/practice-guides/financial-services-regulation-2025/japan/trends-and-developments", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://en.jasec.or.jp/single-post/japan-s-cashless-revolution-what-global-retailers-need-to-know-by-2025", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "vendor_summary", "source": "https://payatlas.com/countries/japan-jp", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://www.fusionsystems.group/blog/japan-digital-payment-revolution/", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W5", "name": "Payment Corridor Dynamics", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w5-payment-corridor-dynamics", "standing_position": "Domestic retail credit transfers clear through the Zengin System (operated by Zengin-Net), with large-value (JPY100m+) and net positions settled across BOJ-NET, the central bank RTGS system. The FXYCS handles yen FX-leg clearing and CLS provides PVP for FX. Zengin began 24/7 operation in 2018 and Zengin EDI (Dec 2018) added richer commercial data. Cross-border corridors run via correspondent banking/SWIFT; emerging links include a BOJ-HKMA cross-border DvP (2021) and an NTT Data MoU with NPCI International to accept India's UPI in Japan. Type I FTSPs can now transmit up to JPY50m per transaction via Zengin-net.", "findings": [ { "finding": null, "instrument_type": "central_bank", "source": "https://www.boj.or.jp/en/paym/outline/index.htm", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "operator", "source": "https://www.zengin-net.jp/en/zengin_net/clearing/", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://www.nium.com/blog/how-japan-is-opening-payments-for-cross-border-business", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://medium.com/tokyo-fintech/japan-fintech-observer-134-29683667c4ee", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W6", "name": "Industry Structure & Commercial Dynamics", "confidence": "High", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w6-industry-structure-commercial-dynamics", "standing_position": "Japan's payments market blends established card networks (Visa/Mastercard/JCB) with a fast-growing QR/wallet layer led by PayPay (SoftBank/Yahoo), Rakuten Pay and au PAY, plus transit e-money (Suica/PASMO) and acquirers/gateways such as GMO Payment Gateway. The cashless ratio reached ~42.8% in 2024/~42% in 2025, with a government target of 80% by 2030, still trailing Korea and China. Consolidation is ongoing: LINE Pay is merging into PayPay, and au Payment is merging with au Financial Services (scheduled July 2026). PayPay had over 70 million registered users.", "findings": [ { "finding": null, "instrument_type": "market_data", "source": "https://jpcc.inc/en/column/cashless-japan-2026/index.html", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://www.fusionsystems.group/blog/japan-digital-payment-revolution/", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market_research", "source": "https://markwideresearch.com/japan-mobile-payments-market", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://medium.com/tokyo-fintech/japan-fintech-observer-128-e34485ff6777", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W7", "name": "Legal & Litigation", "confidence": "Assessed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w7-legal-litigation", "standing_position": "Enforcement is driven by the FSA, which can impose administrative monetary penalties, business-improvement/suspension orders and injunctions and publicly names non-compliant entities; serious AML/CFT failures can lead to criminal prosecution. The headline 2025-26 enforcement theme is an assertive 'targeting' posture toward unregistered offshore crypto/EPI platforms serving Japanese users, with at least one major offshore exchange pausing services after FSA warnings in late 2025. The FSA is also proposing to migrate crypto regulation from the PSA to the FIEA, raising maximum criminal penalties for unregistered sales (toward 10 years/JPY10m).", "findings": [ { "finding": null, "instrument_type": "law_firm_analysis", "source": "https://globallawexperts.com/japan-payment-services-act-2026-guide/", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "news", "source": "https://cryptorank.io/news/feed/8db00-japan-fsa-toughen-crypto-penalties", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "law_firm_analysis", "source": "https://law.asia/japan-crypto-stablecoin-regulations-2025/", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "analysis", "source": "https://mco.mycomplianceoffice.com/blog/cryptocurrency-japan-evolving-regulation-for-financial-firms", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W8", "name": "Merchant Acquiring & Risk", "confidence": "Assessed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w8-merchant-acquiring-risk", "standing_position": "Merchant acquiring sits under the Installment Sales Act (for card acquiring) combined with the PSA for wallet/funds-transfer services; merchants typically partner with FSA-licensed PSPs or domestic bank acquirers. Onboarding is rigorous, with detailed KYC, business-model scrutiny, AML transaction monitoring and STR filing to the FSA/National Police Agency. Certain sectors (gambling beyond government lotteries, adult content, crypto) face restrictions or extra permits. Asset-light acquiring and gateway models (GMO Payment Gateway, PayPay merchant subsidies) shape competition.", "findings": [ { "finding": null, "instrument_type": "vendor_summary", "source": "https://payatlas.com/countries/japan-jp", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market_research", "source": "https://markwideresearch.com/japan-mobile-payments-market", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "vendor_summary", "source": "https://payatlas.com/countries/japan-jp", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_guide", "source": "https://practiceguides.chambers.com/practice-guides/financial-services-regulation-2025/japan/trends-and-developments", "source_url": null, "source_tier": "2", "retrieved_at": null } ] }, { "code": "W9", "name": "Product Innovation & Market Development", "confidence": "Confirmed", "moved_this_cycle": true, "url": "https://payments.gi/jurisdictions/japan/#w9-product-innovation-market-development", "standing_position": "Zengin-Net and JSCC published a joint modernisation roadmap track (April 2026) for next-generation settlement infrastructure; Japan Post Bank has announced plans to launch a deposit-backed digital currency for individual and corporate clients within fiscal 2026.", "findings": [ { "finding": null, "instrument_type": "central_bank_news", "source": "https://www.coindesk.com/business/2026/03/03/bank-of-japan-expands-blockchain-settlement-sandbox-as-2026-cbdc-decision-nears", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "central_bank", "source": "https://www.boj.or.jp/en/paym/digital/dig250718a.pdf", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulator_guide", "source": "https://practiceguides.chambers.com/practice-guides/financial-services-regulation-2025/japan/trends-and-developments", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "news", "source": "https://coinalertnews.com/news/2026/03/03/boj-blockchain-sandbox-cbdc-pilot", "source_url": null, "source_tier": "2", "retrieved_at": null } ] }, { "code": "W10", "name": "Consumer Protection & APP Fraud", "confidence": "High", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w10-consumer-protection-app-fraud", "standing_position": "Japan has no single APP-fraud mandatory-reimbursement scheme equivalent to the UK PSR model; consumer redress for transfer scams runs primarily through the Act on Damage Recovery Benefit Distributed from Funds in Bank Accounts Used for Crimes (2008), under which funds in crime-linked accounts are frozen and distributed to victims. The Consumer Affairs Agency and National Consumer Affairs Center (hotline 188) handle complaints. 'Special fraud' (tokushu sagi) and social-media/romance investment scams reached record losses of ~JPY324bn in 2025, prompting account-freezing data-sharing frameworks, tighter bank-account/SIM rules and police information-sharing agreements.", "findings": [ { "finding": null, "instrument_type": "market_evidence", "source": "https://www.jp-bank.japanpost.jp/en/sustainability/social/customer/protection/", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "news", "source": "https://www.japantimes.co.jp/news/2026/02/12/japan/crime-legal/japan-2025-crime-figures/", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "news", "source": "https://fintech.global/2025/04/30/japan-targets-rising-fraud-with-tougher-bank-account-and-sim-card-rules/", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "news", "source": "https://isthisascam.to/blog/scams-in-japan", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W11", "name": "AML/CFT & Financial Crime", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w11-aml-cft-financial-crime", "standing_position": "Sentinel position: JP AML/CFT anchored in the Act on Prevention of Transfer of Criminal Proceeds, FSA-supervised with NPA/MOF coordination. Travel Rule applies to crypto/EPI (VASP) transfers, scoped to equivalent-rule jurisdictions; five jurisdictions added May 2026.", "findings": [ { "finding": null, "instrument_type": "sentinel_summary", "source": "sentinel://mco.mycomplianceoffice.com/blog/cryptocurrency-japan-evolving-regulation-for-financial-firms", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": "Japan runs an integrated AML/CFT/CPF framework under the APTCP, PSA and FIEA, supervised by the FSA/JVCEA with JAFIC (under the National Police Agency) as FIU. Following its 2021 MER, Japan is now compliant on 4 and largely compliant on 35 FATF Recommendations with none rated partially compliant, reflecting sustained technical remediation, though effectiveness gaps in DNFBP supervision, legal-person misuse prevention and ML/TF prosecution persist.", "instrument_type": "assessment", "source": "FIM (sentinel.gi) per-JID baseline profile — Japan", "source_url": null, "source_tier": null, "retrieved_at": null }, { "finding": "Enforcement: JFSA — Licensed crypto asset exchange operators", "instrument_type": "enforcement_action", "source": "FIM (sentinel.gi) enforcement_action_register (issue FIM-BASE-ENF-003)", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": "Sanctions: OFSI divergence", "instrument_type": "sanctions_change", "source": "FIM (sentinel.gi) sanctions_change_register (issue FIM-BASE-SANC-002)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": "Gap: capacity-deficit", "instrument_type": "gap", "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-003)", "source_url": null, "source_tier": null, "retrieved_at": null }, { "finding": "Gap: legal-gap", "instrument_type": "gap", "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-001)", "source_url": null, "source_tier": null, "retrieved_at": null }, { "finding": "Gap: enforcement-absence", "instrument_type": "gap", "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-002)", "source_url": null, "source_tier": null, "retrieved_at": null } ] }, { "code": "W12", "name": "Correspondent Banking, Settlement & Access", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/japan/#w12-correspondent-banking-settlement-access", "standing_position": "Settlement access for banks is via current accounts at the Bank of Japan and participation in BOJ-NET (RTGS) and the Zengin System; the BOJ publishes eligibility criteria requiring adequate procedures, sound financial condition and operational capability. Non-bank FTSPs historically could not directly join the bank settlement network but reforms aimed to admit them; Type I FTSPs now transmit via Zengin-net. Cross-border yen FX legs clear via FXYCS and CLS provides PVP. Correspondent banking remains the primary cross-border channel, with FTSP entry (e.g. Nium) opening lower-cost alternatives to high-fee bank wires.", "findings": [ { "finding": null, "instrument_type": "central_bank", "source": "https://www.boj.or.jp/en/paym/outline/index.htm", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "central_bank", "source": "https://www.boj.or.jp/en/about/outline/data/foboj06.pdf", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "law_firm_analysis", "source": "https://www.jonesday.com/en/insights/2021/05/japans-amended-payment-services-act-could-prompt-more-nonbank-entries-into-traditional-banking-services", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market_evidence", "source": "https://www.nium.com/blog/how-japan-is-opening-payments-for-cross-border-business", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W13", "name": "Commercial Intelligence & Fintech", "confidence": "High", "moved_this_cycle": true, "url": "https://payments.gi/jurisdictions/japan/#w13-commercial-intelligence-fintech", "standing_position": "MGM Osaka Corp underwent a senior-leadership change effective 2026-05-01, alongside a confirmed $450M equity commitment from MGM for 2026.", "findings": [ { "finding": null, "instrument_type": "commercial_event", "source": "https://www.americanbanker.com/payments/news/japanese-app-paypay-announces-us-ipo-and-visa-partnership", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "commercial_event", "source": "https://www.fintechobserver.com/stablecoin-issuer-jpyc-raises-jpy-5bn-targeting-mass-adoption-and-m2m-payments/", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "commercial_event", "source": "https://www.analyticsinsight.net/amp/story/news/crypto-news-today-japan-pushes-yen-stablecoins-and-crypto-etfs-in-bold-market-shift", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "commercial_event", "source": "https://www.theblock.co/post/387171/japan-bonds-stablecoin-reserves-consultation", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "commercial_event", "source": "https://tracxn.com/d/explore/fintech-startups-in-japan/__F63x_w0O2S3tg-YycgLs0hFK8mlf3HxxeIwKq6hgG3I", "source_url": null, "source_tier": "3", "retrieved_at": null } ] } ] }