Crypto giant Laser ends Japan's four-year license shortage

Highlights

According to records from Laser Digital and Reuters, this is the first time that Japan has added a new exchange registration since 2022.

In the initial stage of business start-up, it will first provide liquidity to domestic cryptocurrency companies, rather than open retail order books.

The Financial Services Office (FSA) continues to prioritize strict cybersecurity compliance over the rapid expansion of the industry.

Laser Digital Japan completes registration, focusing on wholesale liquidity

Laser Digital Japan announced on August 21 that it has completed the registration of a crypto asset exchange service provider in accordance with the Payment Services Law and obtained registration number No. 00032 from the Kanto Finance Bureau. The company's initial mission is not to chase retail transaction volume, but to focus on providing wholesale liquidity to domestic crypto companies. Direct trading rights for institutional investors will be opened after evaluation in subsequent stages.

This deployment strategy highlights Tokyo's cautious pace. Regulators welcome a large traditional financial subsidiary into the market, but only at the infrastructure level on which existing exchanges operate. While retail trials are still on the margins, the first new exchange license in four years focuses entirely on execution, counterparties and depth.

Build infrastructure first

The operation roadmap is very clear. Laser will first serve local virtual asset service providers (VASPs) to tighten the liquidity of domestic order books. Only after the wholesale foundation is solid will management launch digital asset transactions for institutional customers.

In practice, providing liquidity means maintaining reliable counterparties ready to quote competitive bid and demand prices, ensuring that exchanges have stable inventories when customer trading volume surges. Better depth helps narrow spreads and stabilize trading in volatile markets.

As of now, Laser has not disclosed its original exchange partners, supported trading pairs or commercial terms, nor has it provided a launch date for institutional transactions. Regulatory licenses give legal authorization, but do not guarantee immediate transaction volume or active customer integration.

Four-year gap in active markets

The long license window is not due to shrinking encryption activity in Japan. Data from the Japan Virtual Currency Exchange Association (JVCEA) shows that as of July 31, there were 31 operating exchange members. In June, they recorded approximately US$5.7 billion in spot trading volume and US$5.33 billion in margin trading volume.

These numbers prove that Laser is entering an active and well-capitalized ecosystem, rather than building the market from scratch. Laser's immediate goal is not to cultivate retail users, but to demonstrate that a counterparty backed by Nomura Securities can simplify execution processes for companies that already operate within Japan's strict regulatory framework.

The framework remains uncompromising. The Financial Services Office (FSA) continues to strengthen cybersecurity requirements for exchange operators in response to persistent industry threats. The regulator's core goal is to consolidate existing market participants rather than increase the total number of active licenses. This priority is highlighted in the FSA's official guidelines.

Institutional needs are real, but most of them remain at the level of will.

Laser's long-term positioning is aimed at institutional customer groups that have been thoroughly studied by traditional Japanese financial companies. A comprehensive survey jointly released by Nomura Securities and Laser Digital (conducted in April and covering 518 investment professionals, family offices and public interest organizations) found that 65% of respondents believe digital assets are a viable diversification tool.

In addition, 79% of professionals surveyed said they plan to allocate funds to digital assets within three years, and most set a conservative allocation ratio between 2% and 5%(Nomura Securities's complete data report details these indicators).

Although these numbers indicate growing demand, they measure only intentions rather than transactions executed. The survey, conducted between December 2025 and January 2026, revealed continued hesitation: Counterparty risk, price volatility and internal knowledge gaps remain major obstacles. Laser's liquidity-first model responds directly to this hesitation by introducing a regulated, institutional-level qualified counterparty.

Retail trials advance in a free-standing closed environment

While Laser builds its wholesale infrastructure, the consumer-facing encryption business continues to evolve through carefully controlled trials. Convenience store giant Rosen is currently testing a yen-backed stablecoin payment pilot at a Tokyo store, which is limited to participating company employees. As previously reported, the move is an operational sandbox rather than a large-scale marketing campaign.

Both developments are in line with Japan's overall strategy: testing retail tokenization at the checkout desk while strengthening institutional liquidity behind the scenes. Laser's approval is a milestone event, ending a four-year license window period and ushering in the entry of a heavyweight financial institution into the ranks of exchange operators. However, its initial scope was deliberately narrowed. The real test will come from practice: clear exchange partners, narrower spreads and specific timetables for institutional trading.