According to a report by The Japan Times, the decision will now require digital currency exchange operators to register with the Financial Services Agency (FSA), the government agency that oversees finance activities in the country. The action also comes with a grace period for businesses affected, as it will not come into force until one year from its approval.

Reports indicated that the measure was passed as part of a larger update to national banking law that sought to boost the domestic FinTech industry. The measures for digital currencies, by contrast, were fueled out of a desire for consumer protection and to prevent payment applications of the technology from assisting in terrorist financing.

In statements, the Japan Blockchain Association (JBA), a regional advocacy group, praised the decision. Yuzo Kano, the organization's chief administrative officer, told CoinDesk: