[2019-05-31] Japan Hardens Rules for Cryptocurrency Storage and Trading

[mich]

https://www.coindesk.com/japan-hardens-rules-for-cryptocurrency-storage-and-trading?utm_source=twitter&utm_medium=coindesk&utm_term=&utm_content=&utm_campaign=Organic%20

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.


Replacing 'virtual currency' with 'cryptographic assets' is a positive step for JAPAN to recognize crypto as currency

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[vit05]

That's is not a bad thing. Japan is showing they will allow companies to legally offer services of crypto storages and other aspects. Cryptos need to become a legally business

[joniboini]

That's is not a bad thing. Japan is showing they will allow companies to legally offer services of crypto storages and other aspects. Cryptos need to become a legally business

It was probably a good thing imo. Sure, this means more control by the government, but that's inevitable if people want to use centralized exchange where there's a huge risk of hacking and so on. Limiting margin trading is also a good idea as some people are way too greedy sometimes. Like it or not, limiting margin trading would decrease the risk of loss exposure for those users.

Hopefully, more positive adoption will come.

[CryptoBry]

That's is not a bad thing. Japan is showing they will allow companies to legally offer services of crypto storages and other aspects. Cryptos need to become a legally business

It was probably a good thing imo. Sure, this means more control by the government, but that's inevitable if people want to use centralized exchange where there's a huge risk of hacking and so on. Limiting margin trading is also a good idea as some people are way too greedy sometimes. Like it or not, limiting margin trading would decrease the risk of loss exposure for those users. Hopefully, more positive adoption will come.

Regulation is not bad on itself and it is depending on the kind of government that is regulating it and what are the main intentions for such legalities. With the intention of making the field fairer and to protect the investors, I believe that the government of Japan can be trusted and is in fact a big pioneer on this aspect. There is nothing wrong with enacting laws regulating the use, trade and many areas surrounding cryptocurrency or what this said as "cryptographic assets" making things clearer or more defined. Let's hope that the same thing can happen in other countries like Russia, India and China (where ban is still in effect).

[davis196]

I like the term "cryptographic asset".It better describes cryptocurrencies and distinguishes them from the Paypal/Srill/Neteller type of digital money.
More simple,yet strict rules and more clarity is the way to go with crypto regulations.