Japan’s Financial Services Agency (FSA) has released a discussion paper proposing a new regulatory framework for digital assets.
Proposed Cryptocurrency Classification
The paper suggests classifying cryptocurrencies into two categories based on fund distribution, with public feedback sought until May 10, 2025.
Regulation for Type 1 and Type 2 Cryptocurrencies
The proposed dual framework divides cryptocurrencies into Type 1, which are primarily used for business operations or fundraising, and Type 2, which includes established cryptocurrencies like Bitcoin and Ethereum.
Future of Cryptocurrency Classification in Japan
The FSA is considering classifying cryptocurrencies as financial products similar to securities, taking international trends and public feedback into account.
The proposed cryptocurrency classification by the FSA highlights the evolving regulatory landscape in Japan and emphasizes the importance of public opinion in shaping final norms.
