Japan has officially revised its laws to provide more clarity – and tighter controls – over cryptocurrency.

The legislation amending the Payment Services Act and Financial Instruments and Exchange Act was formally enacted on May 31 and will take effect in April of next year.

Among the notable changes, the act does away with the definition of “virtual currency” and replaces it with the broader term “cryptographic assets.”

Further, any company even storing cryptocurrency will be considered a “cryptographic asset exchange” and thus required to register and maintain what experts believe will be an expensive license.

“Smaller companies will need abundant funds if more stringent management systems are required. It may be impossible to maintain existing business unless it changes,” said Masahiro Yasu, CEO of ALIS, token-based social media system that will be affected by the change.

The new law, which had been in the works for months, will also limit margin trading in cryptocurrency.

Original article by Katsuyuki Konishi at Coindesk Japan.

Read more about...

JapanRegulationNewsTrading
Disclaimer Read More

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.