Japanese Can change its classification of digital assets from payment methods to financial products, a feature that would increase supervisory supervision for issuers. The move is in response to an increasing number investment fraud In the country that the digital asset market has grown to approximately $ 4.5 trillion (US $ 30.10 billion) in recent years.
Japan’s financial supervisory authority, Financial services agency (FSA) proposes that the national government review the change in mid -2025. It would place digital (or “crypto”) assets under the Act on Financial Instruments and Exchange, similar to the company’s shares. Although there are technically already registration requirements for issuers for digital access, they are not as strict as those that cover more “traditional” investments.
If it is assumed as politics and then law, this would mean much greater disclosure of issuers’ identity and corporate status. Digital assets in Japan fall below The Payment Services Actwhich classifies them more as a form of payment than a financial instrument or investment-like tokens in the app, stores loyalty points or gift cards.
The law refers to such payment methods as “virtual currencies”, which can include all blockchain and non-blockchain digital assets other than digital versions of the National Currency itself (JPY). To be one Digital payment methodAn asset must exist electronically and be registered on an electronic unit, have a property value and can be replaced by other goods or services.
Since 2017, the defined subcategory “crypto assets” has more specifically, with tighter regulations for exchange platforms. In the years since then, More rules has been aimed at protecting consumers, such as prohibiting misleading ads and increasing the requirements for customer -id, as well as examination of Transactions involving StableCoins.
Contrary to certain claims in the past, it has defined digital/crypto assets in this way never made them legal tender in Japan. Nevertheless, it differs from legal definitions in other major commercial markets such as the United States, which already regard them as property or similar shares.
FSA said there are now at least 11.81 crypto asset trade accounts in Japan, which is almost 10% of the country’s population. This has led to an increasing number of investment fraud and fraud that promises rapid wealth to less knowledgeable customers-of which some involve actual blockchain assets and others who only claim.
Anyone who has ever used a public chat app is used to seeing a variety of investment fraud, and it is very likely that the word “crypto” will be shown somewhere in blurb. Most people will ignore them, but the proportion of users who are sad enough to throw money into strangers make them worthy.
Some schedules seem bizarre for anyone with an ounce of skepticism, but Japan’s large population (a high proportion of which is over 60 years old) still means that there are plenty of potential brands. An example from 2023 involved a Tokyo-based company called Vision and its “subsidiary” that sold shares in leases “USB units” in return for cash payments. When the cash payments quit, the vision began to pay investors in a cryptocoin called “V Cash”, an asset that existed, but was not listed on any exchange and was essentially useless. Over 3,000 people fell for the system and lost over $ 1 million in total.
Bitcoin was the first blockchain network to appear, but since its first publishing in 2009, thousands of more blockchains have been created, each with their own native token. Tokenisation protocols On many of these networks have made a creating one Blockchain-verifiable digital access Relatively simple and sells it as “next hot coins” to anyone who is willing to buy some.
Even with improved registration requirements, fraudsters will always find ways to embarrass – especially since many systems do not even involve actual digital assets or have an issuer to register. They may, however, reduce the number “Pump and Dump” schedules This question an asset and inflating the price before the issuer and their groups of insiders sell their bags at an agreed time, which causes market prices to crash and leave more boring buyers without useless digital symbols.
See: New Age of Payment Solutions
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