Japan amends the "Fund Settlement Algorithm" to drop the entry barrier for the crypto market and prevent the risk of asset outflow.

On June 6, the House of Councillors in Japan passed an amendment to the “Funds Settlement Act,” establishing a new system for “cryptocurrency intermediary businesses.” This allows companies to engage in matching services without having to register as cryptocurrency exchange operators, aiming to drop market entry barriers and promote innovations in crypto finance. The amendment also introduces a “domestic holding order” clause, granting the government the power to order platforms to keep some user assets within Japan when necessary, in order to prevent asset outflow risks similar to those caused by the FTX bankruptcy incident. The new law is expected to come into effect within one year from the date of publication.