On March 30th, COINOTAG reported that the Japan Financial Services Agency (FSA) is actively exploring the regulation of internal cryptocurrency asset transactions. This initiative reflects a significant shift in the Japanese regulatory landscape, as the FSA contemplates designating crypto assets as formal financial instruments under existing legislation. A draft amendment to the Financial Instruments and Exchange Act is anticipated to be submitted to the Japanese parliament as early as the next fiscal year, marking a crucial step towards enhanced oversight.
The FSA’s goal is to mitigate the risks associated with unfair trading practices in the burgeoning crypto market. Regulatory discussions surrounding the specifics of this proposed amendment are expected to commence in the summer of 2025. This proactive approach aims to create a secure environment for investors engaging in cryptocurrency transactions while ensuring compliance with international standards and fostering market integrity.