Japan’s House of Representatives Passes New Crypto Assets Bill as Country Continues Pioneering
The Japanese House Of Representatives have passed a new crypto regulation bill. The lower house of the National Diet passed the bill on May 21st. The bill is supposed to be finalized and made into a law by June 2020.
The amendments to two of Japan’s financial laws — the Financial Instruments and Exchange Act and Payment Services Act — intend to strengthen local regulations on cryptocurrency trading process. The new law also includes a change of crypto-related terminology, altering the term virtual currencies to
Japanese lawmakers first introduced the regulations for cryptocurrency margin trading in March 2019. The Japanese government’s executive branch, Cabinet of Japan, approved draft amendments to Japan’s financial instruments and payment services laws, limiting leverage in cryptocurrency margin trading at two to four times the initial deposit.
The revised bill in the lower house had an additional 15 request that according to the FSA
“require the government to clarify regulatory targets, deploy appropriate personnel, implement appropriate regulations in line with the international standards, consider appropriate taxation methods, etc.”
Speaking to Bitcoin.com, the FSA added:
“The additional resolution (15 proposed items) is items which we should take into consideration before introducing the bill, and we should take appropriate responses to it at the time when the bill comes into effect.”
One of the 15 requests wants the FSA to review the transfer of crypto assets and the right to transfer electronic records, taxation of income tax, etc. on income related to transactions using crypto assets, and take necessary measures based on the results. This will streamline the taxation process and many smaller countries like Malta are also looking into similar things.
There are 19 crypto exchanges till now in Japan but about 140 other companies have shown interest in entering this space. Regarding this, the FSA says:
“The registered crypto-assets broker dealers need neither re-register nor be requalified. Needless to say, however, they are required to develop the system to comply with the obligation newly introduced by this revised Act. We are going to keep on monitoring the situation for maintaining their system on a continual basis.”