Japanese House of Reps Accepts Bill Regarding Crypto Regulation

On Friday, May 31, Japan officially announced the passing of a new bill, initially created by the country’s Financial Services Agency (FSA), that entail national laws on how to deal with cryptocurrencies reports Coin Telegraph and Coin Telegraph Japan. The update has since been revealed on the FSA’s official website.

Coin Telegraph has provided a breakdown of some of the aspects of the bill, which was altered to include crypto assets. Here’s an overview of what the bill is and its purpose:

Legal NameCrypto assets
Purpose – To tighten cryptocurrency
regulations for the purpose
of protecting investors;
– To regulate cryptocurrency
– To lighten risks associated
with said investment;
– To secure everyone
involved from potential
scams and hacks;
– To promote a healthy
 cryptocurrency legislation;
– To limit leverage.
Process In order to achieve the six
aforementioned goals,
the country has passed
a bill, which contains
two primary acts that
have been adjusted
accordingly. They include:
– “The Act on Fund Settlement”,
– “The Financial Instruments
and Exchange Act”.

Since the initial draft has now been approved, it has been reported that the acts will come into effect starting April 2020.

As for the legal name, the country has since alerted investors that the asset should be referred to as “crypto assets” as opposed to “virtual currencies” to avoid confusion.