Japan's financial regulatory agency proposes to include cryptocurrencies in the securities regulatory framework

ChainCatcher news, according to Cointelegraph, the Financial Services Agency (FSA) of Japan released a report on Tuesday recommending the transfer of cryptocurrency regulation from the Payment Services Act to the more stringent Financial Instruments and Exchange Act (FIEA) framework.

This move aims to enhance investor protection and address issues such as unclear information disclosure, unregistered operations, and security risks within the industry, while aligning cryptocurrency regulation with securities regulation. The report indicates that Japan already has over 12 million cryptocurrency accounts, with total user deposits reaching 5 trillion yen (approximately 33.7 billion USD). If the new regulations are implemented, cryptocurrency issuers will face stricter information disclosure requirements, and intermediary services will also be subject to tighter regulation. The proposal is currently an internal briefing document and awaits final decisions from the Financial System Council and the government.