Japan Shifts Crypto Regulation from Payments to Securities Framework
Japan's Financial Services Agency (FSA) is overhauling cryptocurrency oversight, moving jurisdiction from payment systems to securities regulations. The shift to the Financial Instruments and Exchange Act (FIEA) signals recognition of crypto assets as investment vehicles rather than mere payment instruments.
New proposed rules mandate rigorous disclosure requirements for initial exchange offerings (IEOs), including third-party audits and entity transparency. The regulatory pivot aligns with global trends toward treating crypto transactions as securities activities, with particular emphasis on investor protections.
Tax policy appears headed for simplification with a proposed 20% flat rate on crypto profits, while market integrity measures will prohibit insider trading. The changes reflect Japan's attempt to balance innovation with consumer safeguards as digital assets gain mainstream financial relevance.
