Japan’s Financial Services Agency (FSA) has proposed shifting crypto oversight to the Financial Instruments and Exchange Act (FIEA).
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Currently, crypto assets are regulated under the Payment Services Act.
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The move would classify cryptocurrencies alongside securities, imposing stricter rules on issuers and exchanges.
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The FSA says tighter regulation would deter misconduct and improve transparency for investors.
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A legislative amendment is planned for submission to the ordinary Diet session next year.
Stricter oversight could weigh on Japanese crypto exchanges in the near term but may bolster longer-term investor confidence and legitimacy of the sector.
This article was written by Eamonn Sheridan at investinglive.com.
