Japan's government proposes bill to strengthen crypto exchanges

posted 7 days ago
The Japanese government introduced cryptocurrency related amendments to the Financial Instruments and Exchange Law, and Fund Settlement Act. The proposal states: Now, the name "digital currencies" will be changed to “cryptographic assets”, which is consistent with the wording used in G20 countries. Also, it will protect assets in preparation for repayment in case of customer asset outflows.

The bill states customer’s virtual currency should be managed by means of a cold wallet, and if managed on the net, the currency must be backed by financial resources. Margin transactions are to be regulated as FX transactions. The law also prohibits advertising that encourages speculation, and forbids unfair trade including price manipulation, and calls for advance notice of changes to the company’s cryptocurrency.
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