In 2019 the amendments to FIEA and PSA regulating cryptocurrencies were passed in Japan and will enter into force in 2020. These and other respective legislation are a necessity to be familiar with before starting a cryptocurrency company in Japan.
Are you planning to open a crypto-asset exchange in Japan? You should get in touch with COREDO for legal support.
The goal of passing amendments to FIEA is to ensure the regulation of digital assets with securities or similar functions. As for the PSA amendments, they are dedicated to ameliorating the mechanisms of crypto-asset exchange regulation.
Crypto assets in Japan
Speaking of crypto assets in Japan, they have a few characteristics:
- Changeable for other currencies
- Possible to use for payments
- Transmittable through computer networks.
When it comes to PSA, cryptocurrencies that are not expressed in fiat money but are used for payment needs are viewed as cryptocurrencies.
For legal help with business in the cryptocurrency industry in Japan contact COREDO and we will assist you.
Determination of Japan’s crypto assets exchange services
The activities presented here that are conducted for commercial reasons can be considered cryptocurrency exchange services:
- Trading and exchanging cryptocurrencies
- Mediating trade or exchange
- Managing finances or cryptocurrencies in trade or exchange.
Due to the collapse of Bitcoin exchange based in Tokyo and the high level of popularity of cryptocurrency transactions, it was decided by the Japanese government that investors need to be protected by rules and regulations. In fact, Japan was the first to implement a legal framework to regulate crypto transactions. The state has also introduced the conditions to obtain a crypto-asset exchange license and fulfill AML obligations.
In order to open a crypto-asset exchange in Japan it is necessary to file an application to FSA. It is the regulator that is in charge of control over crypto-assets’ exchange and trade.
Status of cryptocurrencies
It is allowed in Japan to own, use, and exchange cryptocurrencies for paper money under FIEA and PSA regulations.
There are several groups that distinguish individuals and companies investing in crypto assets:
- Professional investors
Our team in COREDO is prepared to help you with the investment project launch in Japan.