Japan's financial regulator plans to amend the country's laws to classify cryptocurrencies as financial products, according to local outlet Nikkei.
Planned Legislative Changes
The Financial Services Agency (FSA) plans to submit a bill to parliament to revise the Financial Instruments and Exchange Act as early as next year. The proposed changes will consider input from internal study groups.
Cryptocurrency Regulation in Japan
If the changes go through, cryptocurrencies will be regulated under insider trading laws currently applied to other financial products like stocks. Companies offering cryptocurrencies would be required to register with the FSA. However, it remains unclear which cryptocurrencies will be regulated.
Context and Next Steps
These legislative changes come amid a wave of pro-crypto moves by Japanese regulators. This month, the country issued its first license to deal with stablecoins to SBI VC Trade. There are also plans to slash the capital gains tax on crypto.
Japan's forthcoming legislative changes could significantly impact both the domestic and international cryptocurrency markets, highlighting the importance of regulation in the rapidly evolving sector.
