Japan's Financial Services Agency (FSA) has initiated a public consultation on draft rules for cryptocurrencies and electronic payment instruments, following the 2025 revision of the Payment Services Act. The draft outlines implementation requirements, including updates to official announcements, administrative guidelines, and regulatory rules. Key areas covered include the designation of bonds as underlying assets and a regulatory framework for crypto-related intermediary services. The consultation period ends on February 27, 2026. The FSA is also planning a comprehensive regulatory overhaul, aiming to introduce the country's first spot crypto ETFs by 2028. This includes reclassifying cryptocurrencies as "specified assets" under the Investment Trust Act and proposing a reduction in the crypto capital gains tax to a uniform 20%. The agency is also focusing on enhancing custody and investor protection standards.