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（Original Video in Japanese was published on the FINOLAB CHANNEL on Sep. 16, 2025 by Makoto Shibata）
In this article, we’ll break down the Financial Administration Policy for the 2025 business year, announced by Japan’s Financial Services Agency (FSA), with a special focus on key fintech-related measures.
A New Direction: Leveraging Digital Tech to Address Structural Issues
The FSA’s policy emphasizes encouraging financial institutions to “take on the challenge of leveraging innovative technology,” particularly with the rapid rise of generative AI. At the same time, the FSA acknowledges structural issues like a shrinking population and aging society, aiming to balance user protection with financial system stability.
The policy highlights three key priorities: “Contributing to the sustainable growth of financial institutions,” “Ensuring the stability and integrity of the financial system,” and “Building an organization that constantly evolves to serve the public.” A recurring theme is the continuous focus on “adapting to the transformation of financial services through digital technology.”
Key Fintech Action Plans
The Administration Policy outlines several key action plans related to fintech:
1. Crypto Assets and Stablecoins
Recognizing the growing activity in this space globally, the FSA views crypto assets and stablecoins as key drivers of innovation in financial services.
- User Protection: The policy calls for necessary institutional reforms to protect investors while promoting innovation.
- Tax Reform: The FSA is moving toward a serious discussion on taxing crypto assets with “separate taxation,” similar to other financial products.
- Enhanced Supervision: The FSA plans to strengthen its oversight of unregistered firms and establish a regulatory framework for Japanese yen-pegged stablecoins.
2. Support for AI and Fintech
- AI Discussion: The FSA will launch a public-private AI forum based on its “AI Discussion Paper” to address practical challenges in the field.
- Continued Support: Existing initiatives like “Japan Fintech Week,” the Fintech Support Desk, and the Fintech Sandbox will continue to be promoted.
3. Startup Support and Corporate Value Enhancement
In its push to make Japan a leading nation for asset management, the FSA has included measures to strengthen capital supply for startups.
- Venture Capital: The policy aims to make venture capital a more attractive investment and will follow up on a 2024 report that outlined recommended actions for VCs.
- Collaboration with the TSE: The FSA will work with the Tokyo Stock Exchange (TSE) to enhance support for companies before and after they list on the Growth Market.
- Creating a Better Investment Environment: The FSA is exploring new frameworks, such as allowing unlisted stocks to be included in investment trusts, to expand venture investment opportunities.
4. Strengthening Risk Management
Measures to combat money laundering (AML) and cyberattacks are a high priority.
- AML/CFT: The FSA will work to improve its anti-money laundering and counter-terrorist financing measures in preparation for the fifth round of mutual evaluations by the FATF.
- Cybersecurity: The policy emphasizes the need to recognize cyber risk not just for financial institutions, but also for their outsourced partners.
- Financial Crime: The FSA will work to strengthen its comprehensive measures against financial crimes, such as scams and fraudulent access to securities accounts.
Conclusion
The 2025 Administration Policy clearly shows the FSA’s commitment to embracing new technologies like generative AI and stablecoins while also strengthening the foundations of Japan’s financial infrastructure through startup support and robust risk management. Fintech companies should closely monitor these regulatory trends, as they will have a significant impact on future business development.