Cryptocurrency regulations may change as the industry’s governing body prepares to reform the laws governing stablecoin and investment tokens. Fiduciary banks could also be authorized to manage cryptocurrencies, as is already the case in the United States.
According to the Japanese media CoinPost, the Financial Services Agency (Financial Services Agency, the country’s main financial regulator) has released a new set of policy recommendations for financial administration. The document repeatedly mentions issues related to cryptocurrency.
The new recommendations talk about the crypto industry in a much more positive tone than before. The agency says that in order to contribute to the advent of a “digital society”, it wants to “promote the development of an environment” where “digital currencies and cryptocurrencies” can thrive “to accelerate the development of the web3 and the metaverse from financial point of view.”
The agency plans to classify stablecoins into two legally recognized categories, namely “digital currency-like” cryptocurrencies and “crypto-asset-like” tokens.
The first category, the agency writes, would refer to tokens issued by banks and related companies.
Separately, the agency wants to streamline the system that self-regulatory bodies use to select tokens for listing on crypto exchanges and “develop a system” that will allow fiat banks to conduct cryptocurrency custody operations.
The agency also stressed the need to create a “private trading system” for investment tokens – with many Japanese companies eager to launch trading platforms for these tokens.
Could this regulatory change boost cryptocurrency growth in Japan?
These changes come as the Japanese government takes a positive stance on the crypto industry. As mentioned before, the Prime Minister Fumio Kishida spoke in glowing terms about Web3, metaverse and non-fungible tokens (NFTs), which he said can boost Japan’s economy.
Mr. Kishida also expressed his intention to reform the laws governing how cryptocurrencies are taxed in Japan, especially in the case of companies issuing cryptocurrencies.
Critics have argued that there is currently a brain (and capital) drain in Japan’s crypto sector, with many companies looking to relocate abroad to less tightly regulated countries. Mr. Kishida would like to reverse this trend. The government has traditionally been active in the technology sector, which in many cases has been heavily subsidized.
The easing of the rules regarding the range of tokens listed on crypto exchanges could pave the way for a revival of the Japanese crypto sector.
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