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Japan’s FSA Proposes Registration Rules for Crypto Service Providers

Japan’s FSA Proposes Registration Rules for Crypto Service Providers

Japan’s Financial Services Agency plans stricter oversight, requiring crypto issuers to disclose holdings and classify certain tokens as financial instruments under new regulations.

Summary

Japan’s Financial Services Agency (FSA) is expanding its proposed crypto sector reforms to require issuers raising funds through digital assets to make regular disclosures, including details on asset holdings and issuance plans. In addition, on January 15, the FSA moved to classify 105 tokens handled by domestic exchanges as financial instruments, subjecting them to enhanced regulation. These updates build on earlier plans to mandate registration for digital asset custody and trading management firms in response to major security breaches.

Terms & Concepts
  • Financial Services Agency (FSA): Japan’s national financial regulator overseeing banking, securities, and insurance services.
  • Digital Asset Custody: Secure storage of cryptocurrencies or other digital assets by a third party.
  • Crypto Exchange: An online platform that enables users to buy, sell, and trade cryptocurrencies.