Financial Services Agency Considers Regulating Cryptocurrencies Solely Under the Financial Instruments and Exchange Act

The Financial Services Agency is contemplating regulating cryptocurrencies (crypto assets) not under the current provisions of the Payment Services Act, but primarily under the Financial Instruments and Exchange Act (FIEA).

The idea of subjecting crypto assets to regulation under the FIEA has been discussed previously. Retaining the rules of the Payment Services Act could lead to dual regulation, which might complicate the rules and increase the burden on businesses. Therefore, it is being considered whether it would be more appropriate to regulate primarily under the FIEA.

In Japan, among the crypto asset industry and investors, there is significant interest in the discussions about transitioning the regulation of crypto assets into the framework of the FIEA. This is because...