The Japanese Financial Services Agency plans to impose severe penalties for unregistered cryptocurrency sales, with the maximum prison term proposed to increase to 10 years

According to Nikkei News, the Financial Services Agency (FSA) of Japan plans to strengthen penalties and regulation for unregistered cryptocurrency operators. The plan aims to move regulations related to crypto assets from the "Funds Settlement Act" to the "Financial Instruments and Exchange Act" to enhance investor protection. For operators selling crypto assets without registration, criminal penalties are proposed to increase from the current "up to 3 years of imprisonment or fines of up to 3 million yen" to "up to 10 years of imprisonment or fines of up to 10 million yen (or both)."

In addition, the Securities and Exchange Surveillance Commission will be authorized to conduct mandatory on-site inspections and evidence seizures for criminal investigations. The statutory name for registered operators is proposed to change from "crypto asset exchange operators" to "crypto asset trading operators." This move is in response to the increasing disputes related to highly speculative meme tokens.