- The economic plan of Prime Minister Fumio Kishida includes developing the Web3 market.
- Japanese cryptocurrency exchanges must now register with the government.
Despite the bleak crypto market environment and the collapse of FTX, the government of Japan has agreed to make listings by cryptocurrency exchange in the nation simpler. Japan is relaxing its strict crypto laws even as the ripple effects of FTX’s downfall are still being felt across the industry and beyond.
The economic plan of Prime Minister Fumio Kishida includes developing the Web3 market. Next year, he will likely modify corporate taxes to help business owners in this field.
Regulatory records reviewed by Bloomberg indicate that the new regulation was communicated to cryptocurrency exchange members on December 28. Unless the tokens are wholly novel to the Japanese market, exchanges will be able to list them without undergoing a time-consuming pre-screening under the new regulation, which went into immediately.
Greater Emphasis on Regulation
The cryptocurrency regulatory structure in Japan is among the most advanced in the world. Bitcoin and other virtual assets are recognized as legal property under the Payment Services Act (PSA). Japanese cryptocurrency exchanges must now register with the government and follow the usual Anti-Money-Laundering/Combatting the Financing of Terrorism (AML/CFT) requirements as a consequence of this law.
The National Tax Agency made the decision to classify crypto profits as “miscellaneous income” in 2017. In this case, the purchasers are entitled to a refund.
Even while crypto exchanges are legal in Japan, the country is now placing a greater emphasis on crypto regulation after a series of high-profile thefts, most notably the Coincheck robbery, which resulted in the theft of 530 million US dollars’ worth of digital currency.