Japan Crypto Regulation Strategy Under Review, Impact on Digital Asset Funds Expected

Japan Crypto Regulation Strategy: Japan Considers Crypto Regulation Updates to Boost Domestic Fund Participation

According to Bloomberg, which quoted an unnamed Financial Services Agency official, Japan is planning to reevaluate its regulations on the cryptocurrency industry on Monday. The impact of the country’s strategy for regulating cryptocurrency under the Payments Act will be evaluated during the course of the upcoming months. Furthermore, it might make it easier for domestic funds to purchase tokens representing digital assets.

Japan Considers Lower Taxes and Regulatory Changes for Crypto Assets

To what extent the regulator’s current crypto regulations provide adequate investor protection is a matter of debate. As per the Bloomberg article, it can be determined that either the act requires modifications or cryptocurrency should be reclassified as a financial instrument and come under the nation’s investment law. As the nation has been investigating, this may open the door to reduced taxes on digital assets.

Countries all throughout the world have been trying to make their stance on cryptocurrency more clear. Europe established special regulations for the crypto industry known as the Markets in Crypto Assets guidelines, the United Kingdom chose to make cryptocurrency a regulated activity last year and bring the sector under its financial services regulations, and South Africa just opened up its licensing scheme for the sector.

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