Copy link
Increase text size
Decrease text size
Link copied

Japan’s revised crypto laws to be enforced from May

Image by Ube from Flickr

Wed, 08 Apr 2020, 06:50 am UTC

The new laws for regulating cryptocurrencies in Japan will be enforced next month.

The Japanese House of Representatives passed two legislations last year to regulate crypto, the Payment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA). It was initially expected to take effect in April. However, there were unexpected delays and there was no official enforcement date announced until last week, Cointelegraph reported.

In the official government newsletter on April 3, it was announced that the revised versions of PSA and FIEA would take effect on May 1. Some of the changes in PSA includes basic terminology like “crypto asset” instead of “virtual currency.”

Crypto exchanges operating in Japan from May 1 will need to manage its users’ money separately from their own cash flows. Thus, they will be required to find a third-party operator and use reliable methods like cold wallets.

Should the exchanges insist on using hot wallets, they will be required to hold “the same kind and the same quantities of crypto assets” to reimburse their customers in the event of theft.

Meanwhile, the FIEA revisions include the concept of electronically recorded transferable rights (ERTRs) to define initial coin offerings (ICOs) and the regulation of security token offerings (STOs). Also, crypto derivatives are unregulated in the country but it will be regulated under FIEA starting May 1.

FIEA also discouraged anyone from engaging in activities such as dissemination of rumors, or the use of fraudulent means to sell, purchase, or engage in any crypto asset or derivatives transaction. The revisions in FIEA and PSA will make Japan a safe haven for crypto.

Prior to this, Mihir Sharma of Cryptopolitan reported that Asia has a massive potential to be the next crypto hub. Aside from Japan, Singapore, India and South Korea have developed a good reputation in the crypto sphere especially after the “very strict implementation” of crypto regulations like 5AMLD in Europe.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $9,473.24 (-0.44%)
  • Ethereum (ETH) $225.14 (+1.44%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $239.68 (-0.33%)
  • Bitcoin SV (BSV) $190.62 (-1.14%)
  • Bitcoin (BTC) $9,473.24 (-0.44%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft