Creating a cryptocurrency company in Japan requires familiarity with respective legislation. In the state of Japan, cryptocurrencies are regulated by the amendments to FIEA & PSA that were passed in twenty nineteen & will enter into force in twenty twenty.
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Amendments to FIEA aim to ensure that digital assets whose functions resemble those of securities are regulated by FIEA. In their turn, PSA amendments are primarily aimed at improving mechanisms regulating exchange of crypto assets.
Crypto Assets in the State of Japan
Crypto assets in the state of Japan have a number of characteristic features. They:
- can be used as a means of payment
- can be changed for other currencies
- can be transmitted over computer networks
As per PSA, cryptocurrencies used for payment purposes & having no expression in fiat currencies are normally regarded as cryptoassets.
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How are Japan's Crypto Asset Exchange Services Determined?
Any of the below activities undertaken for commercial purposes can be classified as cryptocurrency exchange services:
- selling or buying cryptocurrencies & exchanging cryptocurrencies for other cryptocurrencies
- mediating or delegating actions described above
- managing money or cryptocurrencies in the context of the above activities
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Rules & Regulations
Given the collapse of Tokyo-based Bitcoin exchange & immense popularity of cryptocurrency transactions, the Japanese government is now putting in place rules & regulations for the protection of investors. It’s worth noting that the first ever legal framework regulating transactions with cryptoassets was created in Japan. That also involved introducing licensing requirements for the exchange of crypto assets & AML measures.
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Establishing a crypto asset exchange in the state of Japan requires applying for registration wirth FSA. This regulatory body is responsible for overseeing activities related to the trading in & exchanging of crypto assets.
Under PSA & FIEA regulations, owning, using & exchanging cryptocurrencies for paper money is allowed in Japan.
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Classification of Investors
Individuals & companies investing in crypto assets are divided into the following groups:
- professional investors
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