Japanese financial regulator proposes to include cryptocurrencies in securities regulatory framework

Japan's Financial Services Agency (FSA) released a report on Tuesday recommending that cryptocurrency regulation be moved from the Payment Services Act to the stricter Financial Commodities Exchange Act (FIEA) framework. The move is aimed at strengthening investor protection, addressing issues such as unclear information disclosure, unregistered operations and security risks in the industry, and aligning cryptocurrency regulation with securities regulation. The report shows that there are already more than 12 million cryptocurrency accounts in Japan, with user deposits totaling 5 trillion yen (about 33.70 billion dollars). If the new regulations are implemented, cryptocurrency issuers will face stricter information disclosure requirements and intermediary services will also be more strictly regulated. The proposal is currently an internal briefing document, pending final decisions by the Financial System Commission and the government.