{"id":4320,"date":"2020-05-14T09:58:57","date_gmt":"2020-05-14T09:58:57","guid":{"rendered":"https:\/\/www.sygna.io\/?p=4320"},"modified":"2020-05-19T18:10:35","modified_gmt":"2020-05-19T18:10:35","slug":"japan-crypto-asset-regulation-guide","status":"publish","type":"post","link":"https:\/\/www.sygna.io\/zh-hant\/blog\/japan-crypto-asset-regulation-guide\/","title":{"rendered":"Guide: Japan Crypto Asset Regulation"},"content":{"rendered":"\n
  1. Introduction<\/a> <\/li>
  2. Japanese 2020 regulatory crypto asset changes<\/a><\/li>
  3. Overview of Japan’s crypto-asset legislation<\/a>
    3.1 Payment Services Act (PSA)<\/a>
    3.2 Financial Instruments and Exchange Act (FIEA)<\/a>
    3.3. What are electronically recorded transferable rights (ERTRs)<\/a><\/li>
  4. Who are Japan\u2019s crypto asset regulators?<\/a>
    4.1     Financial Services Agency of Japan (JFSA)<\/a>
    4.2     Japan Financial Intelligence Center (JAFIC)<\/a>
    4.3     FATF and APG (AML\/CFT)<\/a><\/li>
  5. Japan’s Self-Regulatory Organizations (SROs)<\/a>
    4.1     Japan Virtual and Crypto Asset Exchange Association (JVCEA)<\/a>
    4.2     Japan Security Token Offering Association (JSTOA)<\/a><\/li>
  6. Licensed crypto asset exchanges in Japan<\/a>
    6.1     Registered domestic and foreign exchanges<\/a>
    6.2     Japanese exchanges and the FATF Travel Rule<\/a><\/li>
  7. A brief history of Japan’s virtual asset regulation (2014-2020)<\/a><\/li>
  8. Conclusion- Japanese crypto regulation beyond 2020<\/a>
    About CoolBitX and Sygna Bridge<\/a><\/li><\/ol>\n\n\n\n

    Quick Facts:<\/h2>\n\n\n\n
    Definition of virtual assets<\/td>\u201cCrypto-assets\u201d<\/td><\/tr>
    Legal status of virtual assets<\/td>Legal tender (Bitcoin)<\/td><\/tr>
    Cryptocurrency exchanges<\/td>Crypto-asset Exchange Service Providers (CAESPs). Previously Virtual Currency Exchange Platforms (VCEPS)<\/td><\/tr>
    Main crypto legislation<\/td>Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA)<\/td><\/tr>
    Financial Regulator<\/td>Financial Services Agency of Japan (JFSA)<\/td><\/tr>
    Financial Intelligence Unit<\/td>Japan Financial Intelligence Center (JAFIC)<\/td><\/tr>
    FATF-style regional body<\/td>Asia-Pacific Group on Money Laundering (APG)<\/td><\/tr>
    Tax Status<\/td>Learn more<\/a><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    1. Introduction<\/h2>\n\n\n\n

    Digital innovation is ingrained in the psyche of Japan. This has made the Land of the Rising Sun a perfect incubator for the exponential growth in the value and popularity of cryptocurrencies over the last decade. <\/p>\n\n\n\n

    Consequently, many of the most significant crypto highs and lows in virtual asset history, which includes the most devastating exchange hacks ( Mt. Gox and Coincheck), have all come from this dynamic nation in recent years. <\/p>\n\n\n\n

    For example, Japan was the first country in the world to legally define \u201cvirtual currency\u201d. Japan also requires exchanges to be licensed as crypto asset service providers<\/a> (previously called virtual currency exchange platforms) to offer crypto-related services to Japanese residents. <\/p>\n\n\n\n

    Why is the regulation of cryptocurrencies so highly evolved then in Japan when compared with the rest of the world? <\/p>\n\n\n\n

    Well, for starters, it helps that both regulators and their crypto industry have taken past mistakes in their stride and are pulling in the same direction towards the promised land of mass adoption. <\/p>\n\n\n\n

    Japan’s leading financial regulator, the Financial Services Agency (JFSA), works closely with the Japanese Virtual Currency Exchange Association (JVCEA), the country’s official self-regulated organization (SRO). At the end of April 2020, the FSA recognized another SRO, the Japan STO Association<\/a>, to target crypto securities, specifically security token offerings (STOs).<\/p>\n\n\n\n

    \"Japanese
    Source: Coindesk.com<\/figcaption><\/figure>\n\n\n\n

    On 1 May 2020, Japan began enforcing pioneering new crypto asset-facing legislation. The JFSA’s most recent actions at first resembled unassailable obstacles for all but the most deep-pocketed exchanges. <\/p>\n\n\n\n

    Conversely though, this enhanced regulatory clarity presents significant opportunities for the crypto industry both in Japan and around the world. It establishes common ground with the traditional financial sector, and importantly, provides a clear blueprint for other countries to follow.<\/p>\n\n\n\n

    As CoolBitX <\/a>CEO Michael Ou explained in a recent CoinTelegraph interview:<\/p>\n\n\n\n

    \u201cIt is expected that the soon-to-be-published mutual evaluation report for Japan will also focus on compliance of VASPs with the FATF Recommendations. It would be helpful to other countries if the regulators in Japan, a country seen by many as being at the forefront of digital asset adoption, could demonstrate the measures employed to ensure VASPs comply with FATF\u2019s recommendations.\u201d<\/p>Michael Ou, CoolBitX and Sygna founder<\/cite><\/blockquote>\n\n\n\n

    <\/div>\n\n\n\n

    In this guide, we\u2019ll take a detailed overview of the virtual asset regulatory landscape in Japan in 2020 and the incremental changes that created it. <\/p>\n\n\n\n

    We will specifically look at Japanese crypto-facing legislation, government regulators and self-regulatory organizations (SRO) that govern Japanese virtual asset businesses, and explain how they impact crypto asset service providers in Japan. Finally, we’ll also look back at the history and evolution of Japanese crypto regulation since the first Mt. Gox hack in 2011. <\/p>\n\n\n\n

    <\/div>\n\n\n\n

    2. New 2020 PSA and FIEA regulatory changes<\/h2>\n\n\n\n
    <\/div>\n\n\n\n

    In May 2019, Japan\u2019s House of Representatives ( the lower house of Japan\u2019s National Diet) approved new amendments<\/a> to its Payment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA)<\/a> that came into effect on the 1st of May 2020.<\/a> (Read more in full here<\/a>)<\/p>\n\n\n\n

    The most important PSA and FIEA changes are the following:<\/p>\n\n\n\n