Japan pushes to clarify cryptocurrency regulation…"Should be classified as financial products"

The Japanese Financial Services Agency (FSA) said cryptocurrencies such as Bitcoin (BTC) should be classified as financial products.

On the 4th (local time), according to Cointelegraph, the FSA recently drafted an internal report stating that cryptocurrencies should be regulated under the Financial Instruments and Exchange Act (FIEA) rather than the existing Payment Services Act. The FSA said in the report, "It is appropriate to resolve cryptocurrency-related issues through the mechanisms and enforcement of the Financial Instruments and Exchange Act." The report is said to have no legal binding force.

The FSA believes that applying the Financial Instruments and Exchange Act to cryptocurrencies could close the information gap between issuers and investors. Cointelegraph reported, "If the Financial Instruments and Exchange Act is applied, issuers of cryptocurrencies would be subject to disclosure obligations related to public offerings and secondary distribution," adding "(the application of the Financial Instruments and Exchange Act) is a measure to strengthen investor protection and link crypto management and supervision with securities regulation."

The FSA said balances held at cryptocurrency exchanges in Japan exceed 5 trillion yen (about 47 trillion won). According to the report, the number of accounts opened at cryptocurrency exchanges in Japan was about 12 million. Also, 7.3% of Japanese people with investment experience were found to hold cryptocurrencies.