Japan has relatively been silent regarding the whole crypto regulation debate. Recently, however, in an announcement, it was stated that trust banks would manage crypto and blockchain assets. The Financial Services Agency (FSA) is responsible for the domestic crypto industry and the banking sector. There have been discussions to deregulate trust banks, which would then allow financial entities to take care of the coin deposits, according to the reports from Nikkei. Once implemented, the FSA would allow institutions to treat digital assets as trust assets, despite being considered a volatile and high trading risk asset class.
A key objective of the agency is to enhance investor protection and promote “appropriate” market development by granting permission to trust banks to conduct “asset management operations” related to crypto. In order to initiate the change, the FSA intends to amend legislation related to the financial sector, and before making its decision into law, the agency plans to hold a one-month consultation. Nikkei reports that the measure will take effect from autumn this year. As a result, it would support the domestic banking sector’s growth. Last month, the Funds Settlement Law was amended to allow trust and traditional financial institutions as well as asset transfer providers to issue stablecoins pegged to the Japanese yen.
The FSA is expected to issue further guidance on both security tokens and tokenized real estate. A number of Japanese firms are planning to launch security token-related offerings as well as crypto-powered property projects. The FSA has been given carte blanche authority over wallet providers and exchanges since September 2017. In a new phase of Web3-related growth, the Tokyo government and its Prime Minister Fumio Kishida may be prepared to reform laws to lower the burden on crypto organizations and users.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
