Japan Adopted A New Legislation On The Crypto Regulation
The Japanese House of Representatives has officially approved a new bill providing for the amendment of national legislation in the field of regulation of Bitcoin and other cryptocurrencies.
The new document, prepared by Financial Services Agency of Japan (FSA), provides for amendments to the two existing regulations on cryptocurrency assets.
In particular, we are talking about the “Law on Financial Settlements” and the “Law on Financial Instruments and Exchanges”. The changes are aimed at further protecting consumers and increasing regulatory certainty, including tighter control over derivative products, as well as preventing the risks of hacking exchanges.
In this context, additional provisions in the field of marginal trades were approved, which allow limiting the maximum leverage to x2-x4.
Additionally, the new provisions define a new legal term for cryptocurrencies – now they will be officially called “cryptoactive assets” and not “virtual currencies”, as it has been until now.
This decision is consistent with a recent statement by the Minister of Finance of Japan Taro Aso, who recommended the media to abandon the term “virtual currency”.
The fact that Japanese cryptocurrency exchanges will be forced to limit leverage for margin trading cryptoactive assets, it became known in March.
It is assumed that the new rules will come into force in April 2020. Within 18 months from now, all cryptobirds that provide margin trading services will be required to register. Otherwise, they will lose their license and will not be able to continue operations in the country.