Japan plans to impose new crypto regulations

08 Aug, 2018
by David Robb
News
Japan plans to impose new crypto regulations

Japan is planning to update its regulations regarding cryptocurrencies. The country's Financial Services Authority is concerned about the increased speculation in the crypto market.

The FSA first introduced some revisions to the Payment Services Act back in April 2017, which were intended to protect crypto users. These new rules included a registration system for exchanges that were planning to trade cryptos for yen or other fiat currencies.

The body is now considering bringing in new regulations, in response to the changes that have happened to the crypto marketplace since.

The assumption back then was that cryptocurrencies were likely to see more widespread adoption, and everyday use for payments and remittances. The huge price increases of 2017 up until January 2018 instead brought about an increase in crypto speculation. 

This new level of investment in crypto will require different types of control, as cryptocurrencies are currently outside Japan's Financial Instruments and Exchange Act. Talks have taken place to decide how to proceed.

According to one expert, "Virtual currencies should be positioned as assets for investment, while a legal system to protect investors needs to be established as a matter of urgency."

Read more: Japan considering governing cryptos with a different lawJapan's crypto regulatory body to implement plans to limit margin trading

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