Japan's FSA
Japan’s FSA to Issue Draft Guidelines for Funds Investing in Crypto
October 6, 2019
Japan's FSA
Japan’s FSA to Issue Draft Guidelines for Funds Investing in Crypto
October 6, 2019

Japan’s Financial Services Agency (FSA) has issued draft guidelines for funds investing in crypto.

An announcement on September 30 mentions crypto assets in the introduction, but only alludes to them in the text of the proposed amendment itself, is the latest move by the authorities in the country to prudently manage the development of the market without shutting it down.

The agency notes in the introduction to the proposed revisions to Supervision Guidelines:

“It is anticipated that financial products that invest in crypto assets (virtual currency) will be formed in the future. But there are also indications that investment in crypto assets is encouraging speculation. The agency believes that it should carefully handle the formation and sale of investment trusts that invest in such assets.”

However, they advise funds to exercise caution when investing in assets outside the original objective of the trust and to evaluate potential risks, such as those relating to volatility and liquidity. It refers to the worrying investments as “non-specific assets.”

ALSO READ :  Indian Startup Smart Sight Innovation Develops Blockchain-Based App For Vehicle Inspection

The amendment cautions:

“Special attention should be paid to the composition of such products.”

The Zaikei newspaper notes :

“In the revised bill, virtual currency is not mentioned.”

Likewise, public comments are being taken by the FSA on the revisions through the end of October.

The issuing of the draft comes in the context of movement on the regulatory front in Japan. The country was rocked by the collapse of Mt Gox in 2014 and the 2018 hack of the Coincheck exchange and has been working to re-establish the crypto market on a better footing. Since early 2018, the FSA has been fine-tuning the regulatory framework for exchanges and establishing a framework for crypto offerings, and in early 2019, amendments were proposed to Payment Services Act and the Financial Instruments and Exchange Act.

As progress is already evident, in the first half of 2019, the FSA approved the three new exchanges after approving none in 2018. Last week, a self-regulatory organization (SRO) formed that will help guide the development of the market for security token offerings (STO), suggesting that the private sector is preparing for the new regulatory environment.

ALSO READ :  Brave Browser Gains More Than One Million New Users In March Alone

Source: Coindesk and Morrison Foerster


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a content creator at Digital Notice Media Labs. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. She is an archetypal writer, who loves to create her own little world with words and locutions. Apart from this, her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!