The post Positive News For The Cryptocurrency Market After Years of Waiting From Japan appeared on BitcoinEthereumNews.com.

Japan’s Financial Services Agency (FSA) is exploring a new regulatory framework for cryptocurrency brokers that are not traditional crypto exchanges. The move aims to address the unique role of these entities, such as gaming apps or self-hosted wallets that provide access to third-party crypto services, without subjecting them to the heavier regulations designed for crypto exchanges. Japan has been a global leader in cryptocurrency regulation since 2017, following the Mt. Gox hacks in 2011 and 2014. Its laws for crypto-asset exchange service providers (CAESPs) cover services such as buying, selling, brokering, and storing crypto assets. However, entities that act as introducers connecting users to third-party crypto services without directly handling funds often find the current regulatory requirements burdensome and inappropriate for their limited role. Last week, the FSA outlined the need for a lighter regulatory approach for these intermediaries, presenting its recommendations to the Financial System Council’s Payment Services Working Group. Under the proposed legislation, entities acting as intermediaries will be required to register, but they will face less stringent requirements than traditional exchanges. Key provisions of the framework include: Transparency Obligations: Intermediaries must provide clear and accurate information to users. Advertising Restrictions: These organizations will be subject to limitations on their promotional activities to ensure fair practices. Liability for Damages: Intermediaries may be held liable for damages suffered by users. The FSA gave the example of a gaming app or self-hosted wallet that facilitates access to third-party crypto trading services. These entities can be classified as CAESPs under current regulations even if they do not handle user funds; the FSA accepts that this requirement is too burdensome for their limited role. By considering this lighter regulatory approach, Japan aims to strike a balance between encouraging innovation in blockchain applications and ensuring consumer protection. The framework will allow intermediaries to…

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Filed under: News - @ December 1, 2024 8:25 pm