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Japan Moves Crypto Under Financial Law, Toughens Penalties For Fraud

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Japan had over 13 million crypto accounts when its financial regulator started fielding more than 350 fraud complaints every month. Those numbers helped push the government toward a major regulatory overhaul — one that officially cleared the cabinet this week.

A Shift Away From Payment Rules

For years, crypto in Japan was governed under the Payment Services Act, a framework built around digital money and transactions rather than investment activity.

That changes under the newly approved amendment to the Financial Instruments and Exchange Act, known as the FIEA.

Image: Chesnot/Getty Images

The revision treats crypto assets the same way the law treats stocks and bonds — as financial products subject to stricter rules, required disclosures, and explicit prohibitions on insider trading.

Finance Minister Satsuki Katayama addressed reporters after the cabinet approved the bill. “In response to changes in financial and capital markets, we will expand the supply of growth capital while ensuring market fairness, transparency, and investor protection,” she said.

The Financial Services Agency had been signaling this shift since late 2025. The cabinet’s approval this week moves that plan out of the proposal stage and into formal legislation.

Penalties Rise Sharply For Unlicensed Operators

The new law carries real consequences for bad actors. Prison sentences for unlicensed crypto operators would jump from a maximum of three years to 10. Fines would increase from ¥3 million to ¥10 million.

Trading on undisclosed information — insider trading — would be explicitly banned under the FIEA framework, a prohibition that did not exist under the old payment services rules.

The changes also come with new paperwork requirements. Issuers will be required to file annual disclosures, bringing them closer in line with publicly listed companies.

BTCUSD trading at $72,727 on the 24-hour chart: TradingView

Registered firms will also be renamed, from “crypto asset exchange operators” to “crypto asset trading operators” — a small change in language that reflects the larger shift in how the government now views the industry.

Timeline Depends On Parliamentary Session

Whether the law takes effect in fiscal year 2027 depends on the current parliamentary session. If passed during the ongoing session, that timeline holds. Reports indicate the FSA has been laying the groundwork for this transition for months.

Japan has long been one of the more active countries in setting rules for digital assets. This latest move brings its regulatory approach closer to the standards applied to traditional financial markets, covering investor protections, market oversight, and criminal penalties in one consolidated framework.

Featured image from PlanetofHotels.com, chart from TradingView

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US Fed, Treasury assess spillover risks from $1.8 trillion private credit

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US officials are ramping up scrutiny of the booming $1.8 trillion private credit sector as worries grow about market stress and possible spillover effects on the financial system.

The Federal Reserve is gathering detailed exposure data from big US banks, while the Treasury Department is independently examining how much insurance companies are tied to private credit, Bloomberg reported Friday.

After the 2008 global financial crisis pushed banks to pull back from riskier middle-market loans, asset managers stepped in. Blackstone, Blue Owl, KKR, and Apollo built large portfolios of direct loans to businesses, funded not by bank deposits but by investor capital.

The industry has roughly doubled in size over the last several years, hitting $1.8 trillion in size, which puts it in the neighborhood of the entire US high-yield bond market. It is projected to reach around $3.5 trillion by 2031.

Redemptions and locked gates

Private credit funds faced over $20 billion in withdrawal requests in Q1 from wealthy investors, according to the Financial Times.

Around half of the withdrawals have been fulfilled and the remaining investors are facing delays due to fund limits.

The main risk in private credit is that funds lend to highly indebted, private equity-backed companies that may struggle to repay, especially amid AI disruption and slowing growth.

At the same time, investors can request withdrawals even though the underlying loans are illiquid, creating pressure if many try to exit at once. This mismatch, combined with more reactive retail investors, raises the risk of defaults, forced sales and declining confidence.

Washington is engaged in a regulatory “tug-of-war” over how to help banks compete more aggressively with non-bank lenders without recreating the systemic risks seen in 2008.

JPMorgan CEO Jamie Dimon suggests that the private credit market alone does not pose a systemic risk to the financial system. The $1.8 trillion sector is still relatively small compared with larger credit markets like investment-grade bonds and mortgages, as noted in his letter to shareholders.

However, Dimon warns that when the credit cycle turns, losses across leveraged lending could be larger than expected due to weakening underwriting standards, including looser covenants, aggressive assumptions, and opaque valuation practices. He also flags that limited transparency in private markets could amplify stress during downturns.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.

Visa Direct Integration Lets OwlTing Users Fund USDC Straight From a Debit Card

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The integration marks the latest expansion of Visa’s stablecoin infrastructure, which now spans settlement, card spending, and direct on-ramp capabilities.

Nasdaq-listed fintech firm OwlTing Group (OWLS) has expanded its collaboration with Visa to integrate Visa Direct into its OwlPay payment infrastructure, creating a card-to-wallet on-ramp that lets eligible U.S. debit cardholders fund USDC transactions without needing a standalone exchange account.

The capability is now live inside OwlPay Harbor, the company’s enterprise-grade on/off-ramp layer, and is also accessible to consumers through OwlPay Wallet Pro, a self-custody digital wallet. A subsequent phase will bring the on-ramp to OwlPay Cash, the firm’s consumer remittance app.

Once funded, users can spend USDC at U.S. retailers via gift cards, transfer assets to third-party platforms, or send funds globally through settlement channels including pushes to eligible Visa debit cards, local bank accounts via the Circle Payments Network, and cash pickup through MoneyGram.

OwlTing CEO Darren Wang framed the integration as an effort to close the gap between existing card infrastructure and digital dollar rails. The company holds money transmission licenses or equivalents in 41 U.S. states as of March 2026, according to the announcement.

Visa’s Expanding Stablecoin Footprint

The partnership adds another layer to Visa’s rapidly growing stablecoin strategy.

The payments giant launched USDC settlement in the U.S. in December 2025 with Cross River Bank and Lead Bank on Solana, and in March expanded its collaboration with Stripe-owned Bridge to bring stablecoin-linked Visa cards to more than 100 countries. Visa’s stablecoin-linked card spending alone hit a $3.5 billion annualized run rate in late 2025, growing roughly 460% year over year, according to an Artemis report.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

XRP Price Flashes Multiple Bottom Signals As Bulls Defend $1.30.

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XRP (XRP) has been in an eight-month downtrend, with momentum and onchain indicators at levels that previously coincided with macro bottoms.

Data from TradingView reveals that the relative strength index (RSI) of the XRP/BTC ratio is at 24, the most oversold level since October 2025. 

Such low levels in the daily RSI have marked market bottoms for the ratio, ultimately leading to 65% to 345% XRP price breakouts against Bitcoin as seen late 2024 and 2025.

XRP/BTC daily chart. Source: Cointelegraph/TradingView

The chart above also shows that the XRP/BTC pair is trading within a long consolidation range, which has previously acted as a strong launching pad for the ratio.

The last time XRP bottomed against Bitcoin around this zone was in June 2025. It marked the beginning of a 61% increase in the XRP/BTC ratio, accompanying a 92% XRP price rally to a multi-year high of $3.66.

Other instances shown by the yellow bars in the chart reinforce the reliability of this level in marking macro bottoms for XRP/BTC. 

MVRV Z-Score suggests XRP price is bottoming

XRP’s MVRV Z-score is hovering near zero, a level that historically aligns with accumulation zones and market bottoms.

This indicates that most holders are close to breakeven, reducing sell pressure and signalling potential downside exhaustion. Similar patterns appeared in 2021, 2022 and 2024 before major rallies.

XRP MVRV Z-score vs. price. Source: Glassnode

Note that the last time XRP’s MVRV Z-score fell to similar levels in late 2024 coincided with a macro market bottom at $0.30 and preceded a multi-month rally, with the XRP/USD pair rising 500% to a multi-year high above $3. 

Meanwhile, the 0.80 MVRV pricing band, which has historically marked cycle bottoms, is currently at $1.14, coinciding with a 15-month low reached on Feb. 6.

XRP: MVRV pricing bands. Source: Glassnode

These onchain metrics suggest that XRP is undervalued and may continue the ongoing recovery, potentially rising toward $1.70 or higher. 

XRP price must hold above $1.30 

Meanwhile, XRP/USD remains cautiously bullish as long as it holds the $1.25-$1.30 support zone. 

“$XRP is sustaining the major support zone between $1.30-$1.25 levels since early Feb’26,” trader ChiefraT said in an X post on Friday, adding:

“If this zone continues to hold, then a short-term bounce towards $1.45 can’t be ruled out.”

XRP/USD daily chart. Source: Cointelegraph/TradingView

The importance of this support level is reinforced by cost basis distribution. The heatmap below shows that nearly 1.73 billion XRP were acquired around this price.

XRP cost-basis distribution heatmap. Source: Glassnode

Below that, the next line of defence is the $1.15 demand zone, where the 200-week simple moving average is. 

If XRP/USD drops below this level, it would be in a free-fall toward the measured target of the bear flag at $0.80, or 41% below the current price.

As Cointelegraph reported, holding $1.27-$1.30 would be a sign of strength among the bulls who must push the XRP/USD pair toward the $1.61 range high to regain control.