Could Japanese Regulatory Change Provide New Boost for Crypto?
Regulations governing crypto could be set for a change – with the sector’s governing body preparing to reform laws that pertain to stablecoins and security tokens. Trust banks could also be given the power to handle crypto, as is already the case in the United States.
Per the Japanese media outlet CoinPost, the Financial Services Agency (the nation’s top financial regulator) has released a new series of financial administration policy recommendations. The document makes multiple mentions of crypto-related matters.
The new recommendations speak of crypto in a much more positive tone than has recently been the case. The agency claims that in order to help usher in a “digital society,” it will “promote the development of an environment” where “digital money and cryptocurrency” can thrive “in order to promote the development of Web3 and the metaverse from a financial perspective.”
The agency wants to classify stablecoins into two legally recognized categories – namely “digital money-like” coins and “cryptoasset-like” tokens.
The first category, the agency wrote, would refer to tokens issued by banks and similar companies.
In addition, the agency wants to streamline the system that self-regulatory bodies use when screening coins for listing on crypto exchanges and “develop a system” that lets trust banks perform crypto custody operations.
Furthermore, the agency wrote of the need to create a “private trading system” for security tokens – with many Japanese firms eager to launch trading platforms for these coins.
The changes come as the Japanese government pivots toward a pro-industry stance. As previously reported, Prime Minister Fumio Kishida has spoken in glowing terms about Web3, the metaverse, and non-fungible tokens (NFTs), all
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