Japan: Crypto May Be Classified as ‘Crypto-Assets’ to Prevent Confusion With Legal Tender

Published at: Dec. 18, 2018

The Japanese Financial Services Agency (FSA) is considering placing cryptocurrencies into a new legal category called “crypto-assets,” Cointelegraph Japan reported Dec. 15.

By classifying cryptocurrencies like Bitcoin (BTC) this way, the government reportedly “hopes that traders will no longer purchase them believing that they are legal tender recognized by the government.”

On Friday, an FSA advisory panel filed a report requesting the term “virtual currency” be changed since, according to the panel, it could confuse people into believing the asset is legal tender in the country.

As Cointelegraph reported recently, Japan’s FSA is set to introduce new initial coin offering (ICO) regulations to protect investors from fraud. Business operators conducting ICOs will reportedly be required to register with the FSA.

This month, news broke that there has been a significant wave of reports of suspicious crypto transactions to the Japanese police. The increase reportedly came after the implementation of a law in April obliging cryptocurrency exchange operators to report suspect cryptocurrency transactions to the police.

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