Japanese Financial Regulator Proposes to Include Cryptocurrency in Securities Regulations

BlockBeats News, September 4th, according to Cointelegraph, on Tuesday, the Financial Services Agency (FSA) of Japan released a report suggesting that cryptocurrency regulation should be shifted from the "Payment Services Act" to the more stringent "Financial Instruments and Exchange Act" (FIEA) framework. This move aims to enhance investor protection, address issues such as unclear disclosure of information, unregistered operations, and security vulnerabilities within the industry, and align cryptocurrency regulation with securities regulation.

The report indicates that Japan already has over 12 million cryptocurrency accounts, with total user deposits amounting to 5 trillion yen (about 33.7 billion US dollars). If the new regulations are implemented, cryptocurrency issuers will face stricter disclosure requirements, and intermediary services will also be subject to tighter oversight. The proposal is currently in the form of an internal briefing document awaiting final decisions from the Financial System Council and the government.