Cryptocurrency Q&A
Which cryptocurrency is legal in Japan?
Which cryptocurrency is legal in Japan?
GinsengBoostPowerBoostVitality
Mon May 20 2024
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7 answers
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Could you kindly enlighten me on the legality of cryptocurrencies in Japan? I've been hearing about the increasing popularity of digital currencies in the country, but I'm not quite sure which ones are officially recognized and legal to use. Is there a specific list of cryptocurrencies that are legal in Japan, or are they all generally acceptable? I'm particularly interested in understanding the regulatory framework surrounding these digital assets in Japan. Could you provide me with some clarity on this matter?
7 answers
Dario
Wed May 22 2024
In Japan, the regulatory framework for blockchain-based tokens lacks a comprehensive, omnibus approach. Instead, the legal status of tokens is determined by their specific functions and intended uses. This approach reflects the diverse nature of tokens and the need for tailored regulations.
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RubyGlider
Wed May 22 2024
Cryptocurrencies and utility tokens, such as BTC and ETH, occupy a unique position in the Japanese legal system. Under the Payment Services Act (PSA), these assets are classified as "Crypto Assets." This categorization subjects them to specific regulatory requirements and oversight.
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Raffaele
Wed May 22 2024
The PSA establishes a regulatory framework for Crypto Assets that aims to protect consumers and maintain the integrity of the financial system. It sets forth rules governing the issuance, trading, and custody of Crypto Assets, ensuring that these activities comply with legal standards.
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mia_anderson_painter
Tue May 21 2024
Japan's approach to regulating Crypto Assets reflects a balance between fostering innovation and mitigating risks. The country recognizes the potential of blockchain technology and its associated tokens to drive economic growth and create new opportunities.
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CherryBlossomGrace
Tue May 21 2024
At the same time, Japan is mindful of the challenges posed by Crypto Assets, including market volatility, fraud, and money laundering risks. The PSA is designed to address these concerns by imposing certain regulatory obligations on Crypto Asset businesses.
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