Japan Tightens Cryptocurrency Regulations

One of the world’s most progressive cryptocurrency regimes Japan has introduced stricter cryptocurrency regulations. According to CoinDesk Japan, the legislation revises the Payment Services Act and Financial Instruments and Exchange Act. The new rules will kick in from April 2020.

The new changes have done away with the term ‘virtual currencies’ and classify cryptocurrencies under the broader term – ‘cryptographic assets’. Moreover, any company even storing cryptocurrencies will be considered as a ‘cryptographic asset exchange’ which reports indicate will lead to an expensive license.

The new rules also place limits on margin trading. It will be interesting to see how the Japanese cryptocurrency industry reacts to these regulations.

(Image Credit: Wikimedia Commons)

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