Japan’s Crypto Overhaul Leaves Key Questions Unanswered Ahead of 2026 Legislation

[johnblockbuster]

While Japan is moving quickly toward introducing mandatory liability reserves for crypto exchanges, many of the policy’s most important details remain undecided.
Authorities must still determine how reserve amounts will be calculated, how much insurance can substitute for cash, and how the reserves will integrate with updated insolvency procedures. It’s also unclear whether the rules would cover losses caused by mismanagement, not just hacks.
Implementation timelines, grace periods and enforcement mechanisms are also awaiting confirmation from the Financial System Council ahead of the expected 2026 legislative package.
Despite the uncertainties, the direction is clear: Japan is tightening the screws on crypto operators to ensure customer assets are protected — not just through prevention, but through guaranteed financial recovery when things go wrong.

[Nahid Hossen]

Uncertainty is never good for markets—clear guidelines are overdue.

[Abdul Khan]

Japan is moving, but the missing details create hesitation for investors.

[Nahid Hossen]

Without reflection, even great founders drift off-course.