Japan plans to include crypto assets in its securities regulatory framework, tighten IEO disclosure requirements, and crack down on insider trading.
TL;DR
Japan's FSA proposes moving crypto regulation from the Payment Services Act to the Financial Instruments and Exchange Act, aiming to tighten IEO disclosures, combat insider trading, and allow banks to hold crypto with risk management.
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According to Foresight News , Japan's Financial Services Agency (FSA) has released a report from its Financial Policy Committee working group, proposing to shift the regulatory basis for crypto assets from the current Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA), which primarily targets the investment and securities markets. The proposal plans to strengthen IEO disclosure requirements, mandating the provision of pre-sale information such as details of the issuing entity and token allocation methods, and requiring third-party code audits.
In addition, the new framework proposes to introduce insider trading and unfair trading regulations for crypto assets and establish a levy system; to give regulators stronger tools to combat unregistered platforms, including overseas platforms and DEXs; and to allow banks and insurance companies to hold crypto assets for investment purposes, provided that a risk management system is established.