Japan officially approved the new bill, which amends the regulation of the cryptocurrency sphere.
Japan: Recent Changes in Cryptocurrency Regulation – The bill, prepared by the country’s financial regulator earlier this month, was approved by Parliament last week. Now the document is adopted in the final instance: the amendments will come into force in April next year.
The bill introduces amendments to two laws in force at once: “On financial instruments and stock exchanges” and “On financial settlements”. In general, his message is aimed at improving the safety of citizens and the safety of their funds. The authorities will increase control over cryptocurrency derivatives trading, devote more attention to the problem of hacking exchanges and create a more transparent regulatory structure for the new asset class.
In addition, the new bill will consolidate the term “cryptoactive assets” in the legal field, which will replace the outdated “virtual currencies”. Also, the authorities will increase control over margin trading, limiting the size of the leverage to a sum not exceeding the deposit four times. This is due to the fact that trade “on credit” very often ends up with investors losing money and huge debts, so the government wants to secure its citizens.
Despite the fact that the amendments slightly increase state pressure on the cryptocurrency market, the new initiative is positive. Japan is one of the most significant regions for the industry, so it is very important to create reliable, safe and transparent conditions here. Only this will encourage large players to enter the market, and investors will provide confidence in the safety of their money.