[【2025 Latest】Overseas FX Accounts Are Rapidly Being Frozen | Thorough Explanation of Regulations and 3 Options]

December 18, 2025 Updated

“The bank account I was using to send money overseas for FX has been frozen.” “I may not be able to use bank transfers anymore.”

Since the enforcement of the revised Payment Services Act in June 2025, these anxious voices have been rapidly increasing on social media. In fact, there have been a succession of reports of account freezing and usage restrictions from users of GMO Aozora Net Bank and PayPay Bank.

To put it bluntly, overseas FX is not “obsolete,” but the “gray zone” that has persisted for many years is certainly coming to an end.

This article will provide a thorough explanation of the actual situation of account freezing, the legal background, and the three options that traders should take going forward. Especially for beginners who are just starting to trade, we will convey the path with the lowest risk.

【Conclusion】Overseas FX is Not “Obsolete” but the “Gray Zone is Ending”

First, let me convey the conclusion of this article.

Overseas FX itself does not become illegal. The Financial Instruments and Exchange Act in Japan regulates “solicitation activities by unregistered business operators,” and there is no law that punishes traders for using overseas FX.

However, the environment where many traders have enjoyed “easy deposit and withdrawal through domestic bank transfers” is certainly coming to an end.

Shinshoku-kun

What!? So what should people who are using overseas FX do from now on?

Professor Kaitai

There are three options. Each has its own merits and demerits, so you need to choose one that fits your situation.

3 Options Going Forward

Especially for beginners who are just starting to trade, I strongly recommend starting with ② Prop Firms. The reason will be explained in more detail later.

【Reality】Reasons Why Overseas FX Account Freezing Has Been Rapidly Increasing Since June 2025

Since late June 2025, posts containing the keyword “overseas FX account freezing” have been rapidly increasing on social media.

According to a survey by Myforex, over 200 posts were confirmed in the first week from June 27, 2025. Most of them expressed anxiety such as “Will my account be okay?” and “Will bank transfers no longer be usable?”

Banks with Many Freezing Reports

In particular, the following online banks have seen a noticeable increase in reports of freezing and usage restrictions.

These online banks were used by many traders due to the ease of account opening and low transfer fees. However, their anti-money laundering measures have also been tightened, and remittances related to overseas FX are more likely to be flagged as “suspicious transactions.”

What Happens When an Account is Frozen

Once an account is frozen, there are the following serious consequences.

1. Unable to withdraw funds: If it’s the same account used for salary deposits or utility bill payments, it directly impacts your life
2. Takes time to unfreeze: Submission of ID and remittance purpose documents, and the review process can take 2 weeks to 2 months
3. Possibility of not being unfrozen: The bank may demand account closure if they determine “continuing the transaction is inappropriate”

Shinshoku-kun

Not being able to withdraw funds for 2 months… If the account used for salary deposits gets frozen, I won’t be able to live.

Professor Kaitai

That’s why it’s an ironclad rule to separate the account used for overseas FX from your living account. But first, we need to understand the legal background behind this.

【Legal Background】Understanding the “Three-Layer Structure” That Triggers Account Freezing

Account freezing is not caused by a single law. The “three-layer structure” of the Financial Instruments and Exchange Act, the revised Payment Services Act, and the AML/CFT Guidelines is working in a complex way.

Layer 1: Financial Instruments and Exchange Act | Solicitation of Overseas FX is Illegal

At the core of this issue is the Financial Instruments and Exchange Act.

Japanese law clearly states that it is illegal for service providers, regardless of their location, to solicit or provide FX trading services to Japanese residents without being registered with the Financial Services Agency.

The Financial Services Agency has been continuously issuing warnings since 2009 and publishing a list of unregistered operators.

However, this gray zone does not protect traders. The fact that they are participating in an illegal transaction on the counterparty’s side is the root cause of various risks.

Layer 2: Revised Payment Services Act (Enforced in June 2025) | Stricter Regulation of Payment Service Providers

The revised Payment Services Act enforced in June 2025 is the direct trigger for the recent surge in account freezing.

The core of this revision is that it has newly defined “cross-border payment services” as a “foreign exchange transaction,” which was previously in a regulatory gray zone.

Traditionally, payment service providers did not necessarily need a license to operate their business. However, after the revision, the target service providers are now required to register with the Financial Services Agency and comply with strict KYC (customer verification) and AML (anti-money laundering) measures.

Shinshoku-kun

But even if payment service providers are regulated, doesn’t that have nothing to do with traders?

Professor Kaitai

No, it is very much related. This revision does not directly order banks to freeze users’ accounts. However, the “risk score” of all transactions passing through payment service providers has increased dramatically.

It is extremely unlikely that payment service providers, whose core business model is providing services to operators that the Financial Services Agency deems illegal, will be able to obtain a new license.

As a result, many payment service providers will either withdraw or be seen as “suspicious” by the compliance departments of banks.

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