Japan's cryptocurrency exchange landscape is undergoing a major transformation as large corporations enter the market through acquisitions. Subsidiaries of Yahoo Japan Corp., e-commerce giant Rakuten, and Huobi have all moved to acquire regulated exchanges, reshaping a sector that has been dominated by smaller players. In an exclusive interview with Bitcoin.com, Japan's top financial regulator, the Financial Services Agency (FSA), provided detailed clarifications on the regulatory implications.
Acquisitions and Registration: No Need to Re-Register but Changes Must Be Reviewed
The FSA stated that when a licensed crypto exchange is acquired by another company, there is no requirement to re-register. However, if the acquisition results in changes to the exchange's business model or internal control systems, the FSA will rigorously review them from user protection and other perspectives. Additionally, if there are changes in major shareholders or board members, notifications of those changes must be submitted. This provides a clear compliance path for firms looking to enter Japan's market via acquisition.
On the same day, Reuters reported that the FSA conducted on-site inspections at Huobi Japan and Fisco Cryptocurrency Exchange. The regulator clarified that such visits are routine measures for any exchange that has undergone internal changes. Huobi Japan had recently acquired the Bittrade exchange, while Fisco completed the asset transfer from Zaif after the latter was hacked in September 2018.
New Exchanges Go Live: Yahoo, Rakuten, Huobi Lead the Charge
A subsidiary of Yahoo Japan acquired Bitarg exchange and renamed it Taotao on February 4. The platform started accepting pre-registrations on March 25 and is expected to begin trading in May. According to the FSA's website, Taotao will initially support only Bitcoin.
Rakuten acquired Everybody's Bitcoin exchange, which had been operating since March 2017. The exchange was renamed Rakuten Wallet on March 1, with the old service ending on March 31. The new service launched on April 15, offering trading of BTC, ETH, and BCH against the Japanese yen. Another registered exchange, Decurret, also started operations on the same day, supporting BTC, ETH, BCH, LTC, and XRP.
Earlier in the year, Bittrade ended its service and relaunched as Huobi Japan, offering BTC, ETH, XRP, LTC, MONA, and BCH. Fisco Cryptocurrency Exchange finalized the asset transfer from Zaif, which was hacked last September, the exchange announced on Monday.
Adding More Coins Requires Prior Notice; Foreign Firms Face Same Rules
All approved crypto exchanges must declare which cryptocurrencies they will handle during the application process. Currently, there are 19 registered exchanges in Japan. The FSA said that if an exchange wants to add more crypto assets or replace existing ones, it is required to notify the regulator in advance. For exchanges owned by foreign companies, the FSA confirmed that the registration process is the same as for Japanese firms. Under current law, foreign crypto-asset broker-dealers must establish a company limited in Japan and register with the FSA before conducting business.
With household names like Yahoo and Rakuten entering the market, Japan's crypto exchange sector is set for greater mainstream adoption and compliance. The FSA's transparent guidance offers a clear roadmap for integration, though new entrants will face rigorous oversight. Industry observers are watching closely to see how these developments shape Japan's role in the global crypto landscape.