Could Japan’s Regulatory Change Give Crypto A New Boost?
Regulations governing crypto could be changed – with the industry’s governing body gearing up to reform stablecoin and security token laws. Trusted banks could also be empowered to handle crypto, as is already the case in the United States.
By the Japanese media CoinPost, the Financial Services Agency (the country’s main financial regulator) has issued a new set of financial administration policy recommendations. The document makes several mentions of issues related to cryptography.
The new recommendations talk about crypto in a much more positive tone than has been the case recently. The agency says that to help usher in a “digital society”, it will “promote the development of an environment” where “digital money and cryptocurrency” can thrive “to promote the development of Web3 and the metaverse. of a financial environment”. perspective.”
The agency wants to classify stablecoins into two legally recognized categories, namely “digital currency-like” coins and “crypto-asset-like” tokens.
The first category, the agency wrote, would refer to tokens issued by banks and similar companies.
Additionally, the agency wants to streamline the system used by self-regulatory bodies when screening coins for listing on crypto exchanges and “develop a system” that allows trusted banks to perform crypto custody operations.
Additionally, the agency wrote about the need to create a “private exchange system” for security tokens – with many Japanese companies keen to launch exchanges for these coins.
Regulatory Change – Could It Boost Crypto Growth in Japan?
The changes come as the Japanese government moves towards a pro-industry stance. As previously reported, Prime Minister Fumio Kishida spoke highly of Web3, Metaverse and Non-Fungible Tokens (NFTs), which he says have the power to boost the Japanese economy.
Kishida also spoke about his intention to reform the laws governing how crypto is taxed in Japan – especially in the case of companies that issue crypto-assets.
Critics have claimed that there is currently a brain (and capital) drain in the Japanese crypto sector, with many companies seeking to move overseas to less regulated countries. Kishida would rather reverse that. Historically, the government has been active in the technology sector, which it has heavily subsidized in many cases.
With rules governing the range of tokens listed on crypto exchanges now also relaxed, the stage could well be set for a Japanese crypto renaissance.
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