Laser Digital, the digital asset subsidiary of Japanese banking group Nomura, has been authorized to operate as a crypto asset exchange service provider under Japan's Payment Services Act (PSA).

A list published by Japan's Financial Services Agency (FSA) on Friday showed that Laser Digital received the country's first crypto exchange license in four years. The last platform to obtain FSA authorization was Binance Japan in October 2022. The FSA maintains a public register of licensed crypto asset exchange service providers, which now includes the Nomura-backed firm.

Nomura, one of Japan's largest securities and investment banking groups, launched Laser Digital in 2022 as its dedicated digital asset arm. According to the company, the approval enables Laser Digital Japan to provide institutional crypto asset services in the country.

Japan's crypto market is entering a "new phase of maturity," creating a need for "trusted counterparties and infrastructure" as "institutional investors increase their interest in this asset class," Jez Mohideen, co-founder and CEO of Laser Digital, said in a Friday press release. The authorization places Laser Digital on Japan's public registry at a time when the country's digital asset rules are being adjusted for more traditional-style financial oversight, which is relevant for firms that want to serve institutions under clearer compliance standards.

The license arrives as Japan overhauls its regulatory framework for digital assets. In July, Japan's parliament passed revisions that classify crypto assets as financial assets under Japan's Financial Instruments and Exchange Act (FIEA).

The revisions will move regulation of crypto transactions away from the PSA, where digital assets are currently treated primarily as payment instruments, and introduce insider trading rules and stronger oversight for crypto businesses. The crypto provisions will take effect on a date set by Cabinet order within one year of the amendments' July 23 promulgation.

Japan was one of the first major economies to introduce a licensing regime for crypto exchanges, establishing registration requirements under the PSA in 2017. The new FIEA framework shifts digital assets closer to the rules that govern traditional securities and other financial products.

Japanese Finance Minister Satsuki Katayama signaled the intent to bring crypto under the same umbrella as traditional finance assets in January, to ensure that citizens will "benefit from digital and blockchain-based assets."

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