Japan brings crypto regulations to the Upper House
In the Upper House of the National Diet the Councilors of Japan approved a new regulation for the cryptocurrency trade in the Asian country
The bill for the revision of the Law of Liquidation of Funds and the Law of Financial Instruments and Exchanges was approved by the Chamber of Councilors in a plenary session held in February. Now, the lower house moved these amendments to the House of Councilors in a recent paper.
At the time, the Cabinet of Japan approved the amendments to the Law on Financial Instruments and Exchange and the Law on Payment Services. In the modifications, the leverage in the cryptocurrency margin trade was limited from two to four times the initial deposit.
With the new adjustments, the two main financial laws will expand the regulation to add the margin trade of cryptoactives. It is worth emphasizing that margins trading is the use of funds borrowed from a broker to negotiate an asset under guarantee for a loan.
The new statutes include aspects related to transactions and changes in digital currencies. It is only expected that it be established in the National Diet and the term “virtual currencies” be changed to “cryptographic assets” to refer to the ecosystem.
In the same way, the Financial Services Agency (FSA) of Japan said it will not consider bitcoin as a virtual currency. In addition, he exhorts journalists to abandon the term “virtual currencies”.