Transition of Crypto Assets to Financial Instruments and Exchange Law, Financial Council Approves Recommendations for Legislation

On the 3rd, the Financial Council held its 56th plenary session and 44th financial subcommittee joint meeting, where it officially approved the recommendations for amendments to the crypto asset system. The joint session of the plenary and subcommittee is a format designed to efficiently conduct final deliberations and approve recommendations on critical topics. This approval marks a significant step towards the drafting of legislation for transitioning to the Financial Instruments and Exchange Law. According to the report by the 'Working Group on the Crypto Asset System,' which formed the basis of the recommendations, there is a policy shift to transition the regulatory basis for crypto assets from the Payment Services Act to the Financial Instruments and Exchange Law. Crypto assets are positioned as financial products distinct from securities, and are primarily subject to regulations applicable to Type I Financial Instruments Business operators.