The Japanese FInancial Services Agency (FSA) is submitting a bill to Diet to amend the Payment Services Act and the Financial Instruments and Exchange Act. The changes are meant to strengthen protections for investors and introduce new restrictions for issuers and sellers.
Japan is taking up some changes to its existing cryptocurrency law. In light of the growing acceptance of cryptocurrencies in the country, the FSA is proposing some tweaks to existing legislation. The new additions to the law will further clarify existing regulations and offer extra protection for investors. This will all be a part of the government’s effort to build trust between investors and token issuers.
The Proposed Changes
The FSA’s legislative efforts will rely on a few key aspects of the legal situation regarding cryptocurrencies.
The FSA is proposing that cryptocurrencies be considered a “Crypto Asset” rather than as “virtual currencies.” The regulator views the term “virtual currency” as misleading since most crypto-assets are not to be used as currency.
Particular types of tokens will fall under the category of securities. These will be monitored by the FIEA and will fall outside the jurisdiction of “Crypto Assets.”
All cryptocurrency custody services now become the subjects of the PSA and have to register as a “Crypto Asset Exchange Service Provider.”
Advertisements regarding “speculative investments” in the cryptocurrency space will be banned.
Every time an exchange expands its Crypto Assets offered, it will have to notify the FSA. The proposed law also places more stringent regulations on these exchanges, requiring them to register and be more visible in their practices.
These are just a few of the proposed changes the FSA is putting forward. Although it still has yet to be voted on in the Diet, it is expected to go through without much pushback.
Will these proposed changes have a serious impact on the Japanese cryptocurrency market? Should they be welcomed? Let us know your thoughts below.