According to CoinDesk, Japan is set to review its rules for the crypto sector, Bloomberg reported on Monday. The review will assess whether the nation's approach of regulating crypto under the payments act is effective. This evaluation will take place over the coming months and could lead to significant changes in how digital assets are regulated in Japan.
The Financial Services Agency (FSA) of Japan is conducting the review to determine if the current crypto regulations provide adequate protection for investors. The review may conclude that the payments act itself needs modifications or that cryptocurrencies should be reclassified as financial instruments, thereby falling under the country's investment law. Such changes could potentially lead to lower taxes for digital assets, an area Japan has been exploring.
Globally, nations are working to clarify their stance on crypto regulation. The U.K. made crypto a regulated activity last year, bringing the sector under its financial services rules. Europe has created specific rules for the crypto sector known as the Markets in Crypto Assets (MiCA) rules. South Africa has also recently opened up its licensing regime for the sector.
CoinDesk reached out to the Financial Services Agency for further comments.
Weatherly
