Japan's Financial Services Agency Announces Organizational Restructuring, Establishes Dedicated Cryptocurrency and Innovation Division

On the 29th, the Financial Services Agency announced its organizational and staffing requests for the fiscal year 2026 budget, indicating a significant restructuring of its supervisory framework. The General Policy Bureau will be reorganized to establish a new 'Asset Management and Insurance Supervision Bureau (tentative name)', along with dedicated departments for cryptocurrencies and cashless payments, namely the 'Cryptocurrency and Innovation Division' and the 'Funds Settlement Monitoring Division'. The restructuring will require an increase of 31 personnel, resulting in a net increase of 15 staff members after accounting for reductions through streamlining. This restructuring aims to promote Japan as a nation focused on asset management and to strengthen supervision of the insurance industry, in addition to addressing the rapid expansion of financial services utilizing digital technologies such as fintech, cryptocurrency trading, and generative AI.