Japan Hardens Rules for Cryptocurrency Storage and Trading
Japan has officially revised its laws to provide more clarity – and tighter controls – over cryptocurrency. The legislation amending the Payment Services Act and Financial Instruments and Exchange Act was formally enacted on May 31 and will take effect in April of next year. Among the notable changes, the act does away with the definition of “virtual currency” and replaces it with the broader term “cryptographic assets.” Further, any company even storing cryptocurrency will be considered a “cryptographic asset exchange” and thus required to register and maintain what experts believe will be an expensive license. “Smaller companies will need abundant funds if more stringent management systems are required. It may be impossible to maintain existing business unless it changes,” said Masahiro Yasu, CEO of ALIS, token-based social media system that will be affected by the change.