Japan's Financial Services Agency to push for dedicated virtual assets department…"Restructuring to bring them into the regulatory framework"

Japan's Financial Services Agency (FSA) is pursuing an organizational overhaul to bring virtual assets (cryptocurrencies) into the regulatory framework.

According to virtual-asset specialist media CCN on the 29th, the FSA proposed in this reorganization plan to restructure the existing 'General Policy Bureau' into the 'Asset Management and Insurance Supervision Bureau' and to establish a dedicated virtual assets department under it. The proposal must undergo review by the Ministry of Finance and receive final cabinet approval.

This move is seen as aligned with Japan's policy direction of incorporating virtual assets into the regulatory framework. Earlier, in March, the FSA announced it would pursue amendments to the Financial Instruments and Exchange Act to legally classify virtual assets as financial products.

Also, in June it finalized an amendment mandating the 'Travel Rule' that requires virtual asset service providers (VASP) to collect sender and recipient information when remitting.

The outlet said, "Japan has entered a phase of moving beyond simple supervisory policies and into full integration of virtual assets into the financial regulatory system," and evaluated that "the establishment of a dedicated department and strengthening of legal status will serve as an opportunity to establish a more structural supervisory framework."