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Japan Moves To Reform Stablecoin Regulations And Crypto Brokerage Regulations

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Japan is trying to reform cryptocurrency policies, since the Financial Services Agency (FSA) is intended to introduce significant reforms in the regulation of stableco and crypt brokerage companies.

Second to Local media report Dated February 19, 2025, “Politics includes Stablecoin to be supported by short -term government bonds and some fixed -term deposits in addition to the current demand deposits”.

According to the report, the objective of the policy just introduced is to establish an upper limit of 50% on the amount of new activities that can be incorporated, affecting a balance between improved comfort and safety.

Explore: Japan considers the approval of ETF Bitcoin, can reduce cryptocurrency taxes from 55% to 20%

Counteract long and rigorous requirements

Currently, Japanese cryptocurrency brokers face severe requirements within the same Vasp (VASP) licensed system that applies to cryptocurrency exchanges.

This process is not only long but also technically and financially demanding. Actively vents many companies to enter the market.

Critics claim that brokers, who act as intermediaries rather than custodians of customers’ activities, should not be subjected to the same rigorous standards of exchanges.

In response, a working group commissioned by FSA proposed to create a new regulatory category. This will be specifically for intermediate cryptocurrencies. It would imply simplified requirements and antirricla protocols (AML). In addition, it will be adapted to the unique roles of brokers. Based on this framework, exchanges, token broadcasters and custodial companies assumed greater responsibility for user protection.

The proposed changes are expected to lower the entry barriers for various actors, including gaming companies and wallet operators, potentially increasing innovation in the Japanese cryptocurrency ecosystem.

Explore: Japan to finalize the crypts by June, adopt XRP for international transactions

Japan considers the approval of ETF Bitcoin, can reduce cryptocurrency tax from 55% to 20%

The FSA could finally raise the ban on Bitcoin exchange funds (ETF) and approve them first rather than after.

Reports suggest that FSA is currently focused on Bitcoin and Etheum Etf approvals.

Japan is also taking into consideration the reclassification of cryptocurrencies.

In the future, Crypto could be classified pursuant to the Financial Instruments and Exchange Act (Fiea). Currently, digital activities are treated as payment tools pursuant to the law on payment services (PSA). This reclassification would bring cryptocurrencies on the basis of more severe financial regulations, similar to securities, which require companies to provide detailed information on their operations.

While the legislative amendments could arrive by 2026, the FSA of Japan plans to announce its political direction as early as June 2025.

Furthermore, if Japan is ended for cutting cryptocurrencies to 20%, it could be a turning point for investors.

Keyway keyway

  • The new policies of Japan aim to simplify operations, improve users’ protection and encourage innovation in Japan’s cryptographic and blockchain sectors.

  • The move comes while the country tries to find a balance between regulatory rigor and promoting a competitive environment for emerging technologies.

The post Japan moves to reform the Stablecoin regulations and the intermediation regulations of cryptocurrencies appeared first out of 99 bitcoins.

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