Japan’s Financial Regulator Plans to Classify Crypto Assets As Financial Products
Japan’s top financial watchdog, the Financial Services Agency (FSA), is moving closer to defining cryptocurrencies as ‘financial products,’ according to a new report from Nikkei.
The move, if enacted, would place crypto assets in line with stocks and bonds under the Financial Instruments and Exchange Act (FIEA).
Cryptocurrencies are currently defined as ‘crypto assets’ under the Payment Services Act and are treated as ‘financial instruments’ akin to payment methods.
However, this legal status may soon change as the FSA has already included the reclassification in its fiscal year 2025 tax reform proposals. The regulator is looking to increase crypto assets’ legitimacy and encourage more investment through the…
