Japan’s Crypto Landscape

• Teng brought attention to the fact that 11 million people in Japan had crypto accounts last year.
• The CEO stressed the need for transparent rules in fostering the safe and long-term development of the crypto industry.

Binance CEO Richard Teng lauded Japan’s transparent regulatory framework and quick adoption of cryptocurrencies at an event in the host nation. Teng highlighted that 11 million people in Japan had crypto accounts last year. Addressing the Global Financial Technology Network Forum in Japan, Teng emphasized the need for transparent rules to foster the safe and long-term development of the crypto industry.

Regulatory Oversight

The Financial Services Agency (FSA) manages Japan’s crypto regulatory landscape, ensuring safety and transparency through the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA).

Stringent Reforms

Moreover, exchanges must register and adhere to strict anti-money-laundering and counter-financing-of-terrorism rules, with oversight from self-regulatory groups like the Japan Virtual Currency Exchange Association (JVCEA). Recently, Bybit, KuCoin, Bitget, Bitcastle, and MEXC Global received warnings from the FSA regarding their unlicensed operations.

As reported by Odaily, Yufu Shigeyuki, Director of the Planning and Market Bureau of Japan’s Financial Services Agency, has proposed a thorough reform for crypto assets and stablecoins. A working group meeting of the Financial System Council last month informed this suggestion. A notable aspect of this legislation is the implementation of a “domestic asset holding order” for cryptocurrency exchange operators to enhance user asset protection.

Furthermore, the reform aims to separate crypto brokerage services from other business types, allowing for greater flexibility in stablecoins backed by trust assets. The Financial Services Agency plans to amend the Trust Business Act and the Payment Services Act to clarify these advancements.