Japan's new payment rules hold back bitcoin remittances

posted almost 6 years ago
A forthcoming report from Nomura Research Institute (NRI) argues that despite new regulations aimed at bitcoin and digital currencies, more needs to be done to bring clarity to the innovators working with the technology in Japan.

Penned by senior consultant Yasutake Okano, the report centers on the Payment Services Act (PSA), a bill passed by Japan’s legislature in May. Debated for months, the bill brought domestic bitcoin exchanges under existing anti-money laundering (AML) and know your customer (KYC) rules by classifying virtual currencies as a type of prepaid payment instrument.

The report notes that while the PSA now covers remittances in virtual currencies, this is only for payments up to ¥1m ($9,557), the current limit for prepaid instruments. The report found that the new restrictions are likely to serve as a "barrier to entry" for digital currency exchange businesses, though it suggested any downsides to this were likely to be balanced by a boost in consumer trust and adoption.
Tags: bitcoin, opinion