The Japanese Senate has passed amendments to the Funds Settlement Law, establishing a new system for cryptocurrency intermediaries

On June 6, the Japanese Senate passed amendments to the Fund Settlement Law, establishing a new system of "crypto asset intermediaries", allowing companies to engage in matchmaking services without registering as crypto asset exchanges, with the aim of lowering market entry barriers and promoting crypto financial innovation.
The amendments also add a "domestic retention order" clause, giving the government the power to order platforms to keep some user assets in Japan if necessary to prevent the risk of asset outflows caused by FTX-like bankruptcy events. The new law is expected to come into effect within a year from the date of publication.