Japan Enacts Revised Law to Prevent Crypto Asset Outflows

Tokyo, June 6 (Jiji Press)--Japan's parliament on Friday enacted a bill to revise the payment services law to allow the issuing of an order to prevent outflows of crypto assets held by investors in Japan when crypto exchanges based abroad go bust.

As similar orders under the financial instruments and exchange law cannot be issued to overseas firms that deal only in current crypto assets, the payment services law will be revised so that measures can be taken to ensure that investors in Japan are protected in the event of exchange bankruptcy.

The amendment bill came into law when the House of Councillors, the upper chamber of the Diet, the country's parliament, passed it at a plenary session after the House of Representatives, the lower chamber, did this last month.

Also under the revised payment services law, which will be enforced within one year of its promulgation, an intermediary business that brings crypto asset exchange operators and users together will be newly established. Such a business will be less regulated than exchange operators, making it easier for new services to be created, such as exchanges of crypto assets within game apps.

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[Copyright The Jiji Press, Ltd.]