Japan Grants First New Crypto Exchange License in Four Years as Institutional Demand Builds

Japan has granted its first new cryptocurrency exchange license in four years to Laser Digital, a digital asset firm backed by Nomura, according to information shared by @coinbureau on X. The development comes as Japan moves toward treating crypto assets more like conventional financial products and considers regulatory changes that could support broader institutional participation.

Laser Digital is initially expected to provide liquidity to licensed cryptocurrency businesses in Japan before expanding its activities into institutional trading. The new license marks a significant development in Japan’s regulated digital asset market after a four-year period without a new exchange license.

The move also comes as Japanese authorities have taken steps toward reshaping the regulatory framework for cryptocurrencies. The changes could eventually create conditions for the introduction of crypto exchange-traded funds and reforms to the way digital assets are taxed.

Laser Digital Receives Japan’s First New Crypto Exchange License in Four Years

Laser Digital, which is backed by Japanese financial services group Nomura, has secured Japan’s first new cryptocurrency exchange license in four years.

The company plans to begin by supplying liquidity to locally licensed cryptocurrency firms. Its operations are expected to later expand to include institutional trading, broadening the company’s role in Japan’s digital asset market.

The licensing decision reflects Japan’s continued focus on maintaining a regulated framework for cryptocurrency businesses. Rather than opening the market without restrictions, the country has maintained licensing requirements for companies seeking to provide crypto-related services.

The approval gives Laser Digital a regulated pathway to establish operations in the Japanese market and develop services aimed at institutional participants.

Japan Moves Toward Broader Crypto Financial Regulation

The new license follows changes in Japan’s approach to cryptocurrency regulation. The country has moved toward treating crypto assets as financial products, a shift that could have wider consequences for the domestic digital asset industry.

One potential outcome is the development of cryptocurrency exchange-traded funds, which could provide investors with another regulated way to gain exposure to digital assets.

Tax reform is another area affected by the evolving regulatory framework. Changes to the treatment of crypto assets could influence how individuals and institutions participate in the market, although the post did not provide details on the scope or timing of any proposed reforms.

Japan has historically maintained a relatively structured regulatory approach to cryptocurrencies, with licensed exchanges operating under oversight designed to address issues including market integrity and investor protection.

Institutional Interest Remains Significant

The licensing development also comes amid reported interest from Japanese institutions in acquiring cryptocurrency exposure.

According to the information shared on X, 79% of Japanese institutions surveyed plan to buy crypto within three years. The figure points to a potentially broad base of institutional interest as regulated infrastructure develops.

Institutional participation could increase demand for services such as regulated trading, liquidity provision and custody. Laser Digital’s planned progression from supplying liquidity to licensed local firms toward institutional trading therefore places its new Japanese operations within a broader shift toward professional participation in the digital asset market.

However, the reported survey figure represents stated intentions rather than confirmed purchases. Actual institutional investment will depend on regulatory conditions, market developments and the availability of suitable products and services.

The granting of Japan’s first new crypto exchange license in four years nevertheless represents an important regulatory development for the country’s digital asset sector. With crypto increasingly treated within the framework of financial products, Japan’s next regulatory decisions could shape how exchanges, institutional investors and other market participants operate in the country.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.