The Japanese Financial Services Agency intends to review the Financial Tools and Exchange Law to make encrypted assets of financial products with a legal situation, according to the Japanese economic newspaper Nikki on Sunday, but it mentions the source of the information.
The newspaper pointed out that the encrypted assets will be subject, within the framework of this step, to the restrictions imposed by Japan on trading that prohibit purchase and sale based on unannounced internal information.
She added that the Financial Services Agency will submit a draft law to Parliament by 2026 to amend the financial tools law and exchanges.
Financial instrument
“Nikki” said last month that the Japanese Financial Services Authority “FSA” is studying the classification of encrypted assets as similar financial products for securities, in a step to enhance investor protection by obliging companies to disclose more information.
Experts consider any reforms that enhance the attractiveness of the indicators traded currencies, if they are available. Last August, the head of the Financial Services Authority said that a “careful study” must be conducted for any decision to agree to the incoming indicators related to encrypted currencies.
Tax cooperation
It is worth noting that the National Tax Authority in Japan said at the beginning of last month that it will share information about the trading of cryptocurrencies with its counterparts abroad starting in 2027, as part of a global campaign to combat tax evasion.
This framework initially includes 54 countries and region, including Britain and France, and the United States and other countries will join in 2028.
The participating countries seek to share information such as the name and country of the establishment of participants with trading, in addition to the volume of transactions, and taxes will be imposed on any profits that are not previously reported from encrypted currency trading, which are discovered through the frame.
The Japanese tax authorities are tightening their procedures for the unlimited encrypted currency revenues. In the fiscal year 2023, the authorities discovered 12.6 billion yen (84 million dollars) of income that is not informed of encrypted currency transactions, which led to the imposition of additional taxes of 3.5 billion yen (23.32 million dollars).
Meanwhile, cryptocurrency trading is witnessing a recovery after US President Donald Trump signed an executive thing that encourages them to use.
Japan is one of the first countries to grant cryptocurrencies a regulatory status as a way to pay in 2017, and Tokyo recognized digital currencies such as Bitcoin as a legal payment method under the supervision of the FSA agency.
The most prominent features of the Japanese organization encrypted currencies:
- Cracks of encrypted currencies as Crypto Assets instead of a legal currency, but it remains a means of payment recognized.
- Digital trading platforms must obtain a license from the Financial Services Agency to ensure compliance with safety requirements and combat money laundering.
- The government imposed strict laws to protect user money, such as keeping customer money in separate accounts.
- The government imposed strict laws related to verifying users ’identity and reporting suspicious transactions.
