Our Terms & Conditions | Our Privacy Policy
- The FSA is pushing for the reclassification of crypto as an investment instrument in Japan, repealing the rule that considers it as a mere payment instrument.
- The regulator urges lawmakers to arrive at stricter rules in crypto laws to curb scams and insider trading.
Like any other innovation, the cryptocurrency industry is rife with bad actors looking to make an easy buck at the expense of investors. Recognizing the growing cases of fraudulent activities within the digital assets sector, the Financial Services Agency (FSA) of Japan is considering the reclassification of crypto to be able to impose tougher sanctions for the perpetrators of these illegal acts.
Crypto Policy Revision in Japan
According to Nikkei Asia, the FSA is crafting a draft bill, proposing amendments to the Financial Instruments and Exchange Act (FIEA). The law governs the regulation of financial instruments and exchanges. It aims to ensure fairness in the issuance, distribution, and pricing of securities to protect national economic interests and investors.
Currently, the Payment Services Act specifically classifies crypto assets or “virtual currencies” as payment methods in digital format instead of fiat currencies. Holders can utilize them to pay “unspecified persons” through an electronic data processing system. They can be used as alternative tools for the acquisition of goods or in the “performance of obligations.”
The FSA believes that such a classification has hindered regulators from exercising more rigid monitoring in the crypto sector. In other words, it mainly allows inside trading to slip past their watch.
With that, the regulator is urging legislators to designate crypto as a financial product under the FIEA. This measure effectively repeals its status as a payment tool within the Payment Services Act.
The FSA reportedly recommends stricter requirements for crypto exchanges and entities soliciting investments based on digital assets. In addition, it pushes for hard-boiled rules that would impose punishments for crypto insider trading similar to those present in traditional investments.
Crypto Adoption in Japan
Chainalysis’ report during the third quarter of 2024 revealed that Japan ranks third in terms of crypto adoption in the Eastern Asian market, falling below South Korea and China. However, it only ranked 23rd in the company’s overall 2024 Global Crypto Adoption Index, trumped by several countries within the Central & Southern Asia and Oceania (CSAO) region of the globe like India (1st), Indonesia (3rd), Vietnam (5th), Philippines (8th), Pakistan (9th), Thailand (16th), and Cambodia (17th).
Cash remains king in Japan up to this year, but cashless transactions have slowly been gaining ground over the past few years. As of 2023, digital payments accounted for nearly 40% of the country’s private consumption expenditures based on a Statista survey. The numbers translated to 126.7 trillion yen or approximately $903 billion in 2023’s average exchange rate. Meanwhile, the source estimated that crypto trading value in the country was around 24.92 trillion yen or roughly $177 billion within the same timeframe.
What’s your Reaction?
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.