Japan has passed a bill to relax the entry barriers to the crypto market, paving the way for innovation in the industry.

According to reports, Japan’s House of Councillors passed an amendment to the Fund Settlement Law on June 6, establishing a new system for the “crypto asset intermediary industry”, allowing companies to engage in matchmaking services without registering as a crypto asset exchanger, aiming to lower the barrier to market entry and promote crypto financial innovation. The amendment also adds a “domestic possession order” clause, which gives the government the power to order platforms to retain some of their users’ assets in Japan when necessary to prevent the risk of asset outflow caused by a bankruptcy event similar to that of a trading platform. The new law is expected to come into force within one year from the date of promulgation.