Japan has held top spots in the rankings of the most developed countries for many years. Because the country is also a leader in the field of IT development & cryptocurrency trade, businessmen from all over the world are often interested in registering a crypto company in the state of Japan.
So, let’s have a look at some of the key aspects of regulation of cryptoassets in Japan. What follows below may be useful to potential investors considering starting a business in Asia & all cryptocurrency enthusiasts seeking information on the regulatory landscape in Japan.
Legal Framework
Japan's cryptocurrencies are regulated under the PSA which defines their scope, regulates transactions in cryptoassets, and licensing of Japanese cryptocurrency companies & cryptocurrency exchanges.
Cryptocurrency transactions are also governed by the AML Act, which has recently been amended to allow for more controlled exchange of cryptocurrencies. The recent amendments to the FIEA also ensure that the regulation of security tokens in the state of Japan falls under the FIEA’s purview.
Regulating cryptocurrency activities in Japan is vested in the FSA. In particular, it’s responsible for regulating trade in & exchange of cryptoassets, including enforcing PSA compliance. Registering a crypto exchange in the state of Japan also requires FSA’s approval. It should be remembered that other government bodies may also be vested with regulatory powers with regard to cryptocurrency activities.
Registering a DCE exchange in the state of Japan requires keeping in mind that rendering cryptocurrency exchange services is defined as:
- activities carried out for commercial purposes:
- selling, buying or exchanging cryptoassets;
- mediating & delegating actions referred to in the first two items;
- managing clients’ digital currencies or cryptoassets.
Penalties for Cryptoasset-Related Violations
Violating Japanese law entails a fine or imprisonment, depending on the severity of the committed crime. The FSA may also punish violators by issuing termination orders.
Those seeking to register a cryptocurrency exchange in Japan should keep in mind that possessing, using & exchanging cryptocurrencies (fiat currencies included) in this country are permitted by law.
Need more information on the regulation of cryptocurrency activities in the state of Japan? Need legal assistance with registering ICOs in Japan, China, Singapore and other Asian countries? Consider contacting IQ Decision UK! Our legal advisors are always on standby to give you a hand with any legal issues you’re facing.
