Prime

Bitcoin

Security

Reports have emerged that Japan plans to assess the effectiveness of its cryptocurrency rules.
The review, which will take place over the next few months, could pave the way for the launch of crypto exchange-traded funds (ETFs) in the country.
<h2 id="review-to-evaluate-investor-protection">Review to Evaluate Investor Protection</h2>
The news was first <a href="https://www.bloomberg.com/news/articles/2024-09-30/japan-crypto-review-may-open-door-to-lower-taxes-dedicated-etfs" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">reported</a> by Bloomberg, which quoted an unnamed official from Japan’s Financial Services Agency (FSA). According to the report, the review will measure how adequate the country’s current approach to crypto regulation has been under the Payments Services Act (PSA).
Initially enacted in 2009, Japanese lawmakers have amended the PSA several times to address the changes in the financial services landscape triggered by the emergence of digital currencies.
The act recognizes Bitcoin (BTC) and other cryptocurrencies as legal property. It also requires crypto exchanges to be registered and comply with the country’s Anti-Money Laundering (AML) and Counterfinancing of Terrorism (CFT) obligations.
Furthermore, Japan’s Financial Instruments and Exchange Act (FIEA) also plays a key role in digital asset regulation, especially with regard to crypto derivatives transactions.&nbsp;The FSA wants to ascertain whether these rules have effectively safeguarded investors, given that Japanese holders mainly use cryptocurrencies as investments rather than for payments.
According to Bloomberg, such a move could lead to changes in the laws or even a reclassification of digital assets as financial instruments under the FIEA. If that were to happen, analysts suggest that not only would it improve investor protection measures, but it could possibly make it easier for the industry to negotiate for lower taxes on crypto.
<h2 id="potential-reforms-for-crypto-taxes-and-security">Potential Reforms for Crypto Taxes and Security</h2>
The country’s stringent crypto rules were fashioned to protect against occurrences like the Mt. Gox hack and subsequent bankruptcy, as well as 2023’s FTX debacle from happening or adversely affecting local crypto holders.
Only recently, the crypto exchange <a href="https://cryptopotato.com/japanese-crypto-exchange-dmm-bitcoin-hacked-305m-worth-bitcoin-drained/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">DMM Bitcoin</a> lost more than $300 million worth of BTC to hackers. The platform later stated that it would reimburse all users who lost their crypto in the attack and that it would acquire a proportionate amount of the stolen BTC.
In the aftermath of the attack, the FSA demanded that DMM Bitcoin provide the regulator with a business improvement plan by the end of October that would outline how it intends to protect customer assets in the future.
Japan has already made some concessions to its crypto tax requirements. In June 2023, its National Tax Agency published a partial <a href="https://cryptopotato.com/japan-eases-crypto-tax-requirements-to-entice-fintech-companies/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">revision</a> of its corporate tax guidelines exempting companies issuing crypto tokens from paying a 30% levy on their holdings.
Prime Minister Fumio Kishida has also been leading the charge in promoting Web3, a future iteration of the Internet expected to be built around blockchain and utilize crypto. This has led to some of the largest corporations in the country, including <a href="https://cryptopotato.com/sony-to-launch-crypto-exchange-in-japan-via-acquired-local-platform/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Sony</a> and Mitsubishi Bank, getting into the business.
The post <a href="https://cryptopotato.com/japan-considers-changes-to-crypto-rules-as-fsa-launches-review-report/" rel="noopener noreferrer nofollow">Japan Considers Changes to Crypto Rules as FSA Launches Review: Report</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Japan Considers Changes to Crypto Rules as FSA Launches Review: Report

Table of Contents

CryptoPotato_News

Other articles published on Oct 2, 2024

Sui Integrates SCION as a First-of-its-Kind Security Protocol for Network Validators

Robinhood Expands Crypto Services in Europe, Offering Self-Custody and Transfers

Your Guide to ChangeNOW: Instant Access to More Than 1,000 Crypto Assets for Bull Market Success

Experts Split Between An Uptober For Bitcoin And Solana Or Pumptober For 10,000% Dominate Presale

Starling Bank Fined £29 Million for Failure to Screen High Risk Crypto Platforms

Why Is Wormhole (W) Price Pumping?

Join our free newsletter for daily crypto updates!