Japan's Crypto Regulations Evolve, Attracting Global Institutions Like Laser Digital

Laser Digital, the cryptocurrency subsidiary of Japanese financial firm Nomura Holdings, has initiated pre-consultation discussions with Japan's Financial Services Agency (FSA) to secure a license for institutional-grade crypto trading services. The move underscores growing institutional demand for digital assets in Japan, a market characterized by stringent regulatory frameworks and a surge in transaction volumes. CEO Jez Mohideen confirmed the firm's engagement with the FSA, a precursor to formal license applications, highlighting optimism in Japan's digital-asset ecosystem Laser Digital Engages Japan’s FSA In Licensing Talks For …^[1].

Japan's crypto market has seen significant growth, with transaction values doubling to ¥33.7 trillion ($230 billion) in the first seven months of 2025, driven by regulatory reforms and tax incentives Nomura’s Laser Digital Prepares Japan Crypto License Push as …^[4]. The FSA is revising its crypto framework to classify digital assets as financial products under the Financial Instruments and Exchange Act, a change expected to solidify institutional participation. Laser Digital aims to leverage its existing regulatory expertise, including a Dubai-based crypto license and operations in Abu Dhabi, to navigate Japan's complex compliance landscape Nomura Subsidiary Laser Digital Seeks Japan Crypto Trading …^[3].

The firm's strategy focuses on institutional clients, including hedge funds, asset managers, and exchanges, offering services such as custody, derivatives, and structured products. This contrasts with retail-focused platforms like Coincheck and BitFlyer. If approved, Laser Digital would become one of the first foreign entities to provide regulated crypto services in Japan, aligning with Nomura's broader vision to bridge traditional finance and digital assets Laser Digital Engages Japan’s FSA In Licensing Talks For …^[1].

Japan's regulatory environment, shaped by past scandals like the 2018 Coincheck hack, prioritizes compliance and risk management. The FSA's revised framework, anticipated to include tax cuts and streamlined fund structures, is attracting global firms seeking regulated markets. Laser Digital's entry aligns with this trend, as demonstrated by rival Daiwa Securities' recent move to allow Bitcoin and Ethereum as collateral for yen loans Japan’s Largest Brokerage Bets on Crypto Future as Institutional …^[6].

The potential approval of Laser Digital's license could reshape Japan's institutional crypto landscape. With Nomura's domestic reputation and Laser's experience in Dubai, the firm is positioned to offer a trusted gateway for international investors. Analysts note that Japan's combination of regulatory rigor and market growth makes it a strategic hub for digital-asset services in Asia, competing with centers like China Hong Kong and Dubai Nomura Subsidiary Laser Digital Seeks Japan Crypto Trading …^[3].

Laser Digital's expansion into Japan reflects broader industry shifts. As institutional demand for crypto grows, traditional financial firms are integrating digital assets to diversify revenue streams. Nomura's venture into crypto trading builds on its 2022 launch of Laser Digital and earlier initiatives like Komainu, a crypto custody provider. Despite challenges, including a quarterly loss in Europe attributed to Laser's underperformance, the firm remains committed to long-term digital-asset strategies Nomura targets crypto trading in Japan through Laser Digital …^[5].