Word on the street is that Japan's FSA is looking to clamp down on crypto lending services. They're planning to bring these platforms under the Financial Instruments and Exchange Act—basically patching up the regulatory gaps that currently exist.

What does this mean? Stricter oversight is coming. The agency wants to enforce tougher risk management protocols and custody standards for platforms handling user assets. No more playing loose with client funds.

Oh, and there's talk about setting investment caps too. The FSA seems determined to protect retail investors from overexposure while keeping the whole ecosystem on a tighter leash. It's a clear signal that Japan's crypto space is entering a more regulated phase.

Anyone operating lending services in Japan should probably start prepping for compliance upgrades. The regulatory net is tightening.