（Original Video in Japanese was published on the FINOLAB CHANNEL on Jan. 20, 2026 by Makoto Shibata）

On December 10, 2025, the Financial System Council’s Working Group (WG) released a report that marks a historic turning point for digital assets in Japan. Based on these recommendations, specific legislative amendments are expected to be finalized over the next one to two years, fundamentally reclassifying crypto assets within the Japanese legal framework.

1. Background: The Evolution into an Investment Asset for 13 Million Users

While crypto assets like Bitcoin were originally introduced as a “means of payment” for seamless transactions, the reality in Japan has shifted significantly:

• Market Scale: Domestic crypto accounts have exceeded 13 million, with assets under custody reaching approximately 5 trillion yen.
• User Intent: Nearly 90% of users hold crypto for long-term investment purposes—a higher ownership rate than Forex (FX) or corporate bonds.
• Critical Issues: Challenges such as opaque information disclosure, scams by unregistered operators, cybersecurity breaches, and a lack of measures against unfair trading have necessitated a more robust framework.

To address these realities, a new system is required to protect users as “investors” rather than just “consumers.”

2. Fundamental Regulatory Overhaul: Transitioning to the FIEA

The most significant change is the shift of the legal basis from the Payment Services Act to the Financial Instruments and Exchange Act (FIEA).

• Unified Regulation: By integrating crypto under the FIEA, Japan aims to enhance market fairness and investor protection to the same standard as traditional stocks and bonds.
• Scope: While “Crypto Assets” are the primary focus, NFTs and Stablecoins will continue to be regulated under existing frameworks tailored to their specific functions.

Strengthening Information Disclosure

To eliminate information asymmetry, the following obligations are being considered:

• Issuers: Mandatory disclosure of information at the time of new sales for centralized projects.
• Exchanges: An obligation to gather technical data and provide it to users in an easy-to-understand format.
• Continuous Disclosure: Ongoing reporting of material events that could impact investment decisions, alongside periodic financial disclosures.

3. Cracking Down on “Unfair Trade”: Insider Trading Regulations

Insider trading regulations, previously reserved for the securities market, will now be applied to crypto assets.

• Prohibited Acts: Individuals with access to “material non-public information” will be banned from trading before public disclosure.
• Examples of Material Facts: Bankruptcy of an issuer, discovery of major security risks, info regarding new listings or delistings, and large-scale trades exceeding 20% of the circulating supply.
• Enforcement: The introduction of a monetary surcharge system (administrative fines) will significantly strengthen legal enforcement.

4. The Long-Awaited 20% Separate Taxation

Perhaps the most impactful change for investors is the tax reform. Following a Cabinet decision on December 26, 2025, a major policy shift was announced:

• Current Status: Classified as “Miscellaneous Income” subject to aggregate taxation (with a maximum tax rate of 55%).
• New Policy: Transition to 20% separate taxation (15% income tax and 5% local inhabitant tax), aligning crypto with other financial instruments under the FIEA.

This change is expected to allow for profit/loss carryforwards and significantly elevate the status of crypto assets as a legitimate investment vehicle.

5. Impact on Business and Future Outlook

The regulatory landscape for businesses will undergo a dramatic transformation:

• Increased Burden on Exchanges: Operators will face stricter “ancillary business restrictions” and security requirements equivalent to Type I Financial Instruments Business operators. Requirements for “liability reserves” against hacks may increase operational costs and entry barriers.
• Lower Barriers for Financial Institutions: Following the reform, banks and insurance companies may be permitted to hold crypto assets directly. Furthermore, their subsidiaries are expected to be allowed to engage in exchange services and investment management.

Conclusion

By reclassifying crypto assets as financial instruments, this shift effectively resolves the issues found under previous payment-focused regulations.

While increased compliance costs remain a challenge for operators, the transition to 20% separate taxation provides a massive tailwind for general investors. Though full implementation may take up to two years, the roadmap is now clear, and the industry is entering a new era of institutional maturity.

（Original Video in Japanese was published on the FINOLAB CHANNEL on Dec. 17, 2025 by Makoto Shibata）

The wave of digitalization is drastically changing not only individual financial transactions but the very nature of corporate banking. Currently, the environment surrounding corporate accounts is accelerating in two directions simultaneously: a strengthening of “defensive” regulations to prevent illicit use, and an “offensive” expansion of digital services targeting SMEs.

Based on the insights from Fintech Topics #123, this article breaks down the latest trends in corporate accounts from the dual perspectives of “Risk & Regulation” and “Business Opportunities.”

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1. The “Defensive” Side: Tightening Regulations and Fraud Countermeasures

Abuse of corporate accounts for money laundering, fraud, and phishing has surged in recent years. In response, the regulatory frameworks of authorities and related organizations are shifting significantly.

Strengthening “Beneficial Owner (BO)” Verification

In March 2025, the Japan Business Federation (Keidanren) announced a push to raise awareness for the “Beneficial Owner List System.” This procedure identifies the actual individuals (business owners) who control a corporation.

• Impact: New corporations, companies with complex ownership structures, and Japanese subsidiaries of foreign firms will face more standardized and rigorous screening processes, such as the mandatory submission of lists issued by the Legal Affairs Bureau upon account opening.

Thorough Implementation of the Risk-Based Approach

The Financial Services Agency (FSA) published its “Status and Challenges of Measures against Money Laundering, CFT, and Financial Crimes (2024 Edition).”

• Requirement for Specificity: Financial institutions are now required to provide proof of effectiveness based on concrete risk evaluations (e.g., business nature, transaction regions, transaction patterns) rather than just stating that they have “measures in place.”
• Operational Shifts: For transactions involving high-risk industries or specific countries, the outlook includes an increase in requests for additional documentation and longer timeframes for account opening.

The Evolution of eKYC and Regulatory Reform

The method for identity verification (eKYC) is changing due to amendments to the Act on Prevention of Transfer of Criminal Proceeds.

• New Method: Public Personal Authentication using My Number Card information stored on smartphones will become the mainstream.
• Scheduled Abolition: The current mainstream method—matching a “face selfie” with a photo of an ID document—is scheduled to be abolished in April 2027. Consequently, online corporate account opening needs to be redesigned based on the My Number Card system.

Requests for Fraud Prevention Measures

The National Police Agency and the FSA have jointly requested the strengthening of fraud prevention for corporate accounts.

• Multi-layered Detection: Monitoring focused on access environments, transaction amounts, and frequency will be enhanced. If suspicious activity is detected, institutions are requested to promptly suspend withdrawals, freeze accounts, or terminate contracts.

Alerts on Voice Phishing and Literacy Improvement

The Japanese Bankers Association has issued a warning regarding “voice phishing” targeting corporate accounts.

• Method: Scammers pose as bank employees over the phone to skillfully lure victims to fake websites, stealing internet banking login IDs and passwords.
• Countermeasures: High literacy is required not only from banks but also from corporate users. It is essential to strictly enforce basic principles: “Banks will never ask for passwords via phone or email” and “Always log in via bookmarks, never through links in emails or messages.”

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2. The “Offensive” Side: Business Opportunities for SMEs

Conversely, financial institutions face challenges such as the reduction of staff and branches and the need to secure profitability. This has enhanced an effort by banks to support corporate clients efficiently through digital offerings.

Digitalization Support by Megabanks

• SMBC (Trunk): This service aims to capture share among small and micro-enterprises by offering low fees, supporting automated payments for social insurance and taxes, and providing speedy account opening.
• MUFG (Partnership with LayerX): Through “Bakuraku MUFG,” the bank offers a system that uses AI OCR to automatically read invoices and provides an end-to-end workflow for approvals, internal decisions, and accounting, helping SMEs streamline back-office operations.

API and App Strategies by Net Banks

• GMO Aozora Net Bank: Provides a dedicated corporate app to enable agile operations entirely via smartphone. They also provide BaaS (Banking as a Service) functions to Ikeda Senshu Bank (01BANK), which utilizes data from cloud services to build new credit models that do not rely solely on traditional financial statements.

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3. FinTech Startups Supporting Corporate Transactions

The future of corporate transactions will be supported by FinTech companies collaborating with financial institutions.

• Identity & Existence Verification: Startups like Liquid and TRUSTDOCK (eKYC) and SimpleForm (corporate existence verification and ongoing follow-up) are highly active.
• Fraud Detection: Services such as Caulis (FraudAlert) ensure the safety of transactions.
• Functional Expansion: Value-added services for corporate accounts are being enhanced by freee and Money Forward (accounting), LayerX, Rakus (Raku Raku Seikyu)., and TOKIUM (invoicing/expense management), and Kaikei Bank (tax filing).

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Summary: The Digital Touchpoint is the New Battlefield

The movements surrounding corporate accounts can be summarized into two key points:

1. Sophistication of Risk Response: Due to tightening regulations, more precise data and digital identity verification have become indispensable for opening and maintaining accounts.
2. Providing Added Value: The ability to provide seamless integration between payment functions and back-office operations (accounting, invoicing, credit) will determine the competitiveness of financial institutions.

Business opportunities in the corporate FinTech sector—covering both “defensive” solutions and “offensive” functional expansions—are highly likely to continue expanding through the utilization of startup technologies.