Japan plans major shift as crypto moves from payments to securities law

Japan's Financial Services Agency (FSA) is preparing a significant regulatory shift, moving the oversight of crypto assets from the Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA), which governs securities markets. This change is driven by the increasing use of crypto assets as investment targets, necessitating user protection through financial product regulation. A core component of this shift involves strengthening data disclosure requirements for Initial Exchange Offerings (IEOs), mandating pre-sale disclosures, independent code audits, and identity disclosure for issuers, even for decentralized projects. Furthermore, the new framework will empower regulators to crack down on unregistered platforms and explicitly prohibit insider trading. This regulatory update coincides with the Japanese government considering a reduction of the maximum tax rate on crypto profits to a flat 20%.

(Source：Cointelegraph)