The Japanese government has taken steps to strengthen regulations surrounding crypto assets in an effort to enhance user protection.
As part of this initiative, a bill has been submitted to the extraordinary Diet session proposing changes to the current laws governing these assets. Specifically, the Financial Services Agency (FSA) is seeking to transfer crypto assets from the Payment Services Act to the Financial Instruments and Exchange Act. This move aims to better differentiate between issuers based on their information disclosure practices.
Moreover, the FSA plans to establish a new category for businesses involved in crypto asset trading, increase penalties for unlicensed operators, and introduce regulations on insider trading and a levy system.