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Report – Japan’s Parliament Transfers New Cryptocurrency Regulations to its Upper House

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According to a report by a local news agency local news, the Japanese House of Representatives has passed new crypto regulations in the upper house of the National Diet.

As per the report, the lower house has transferred amendments related to cryptocurrency to the existing financial law to the House of Councilors at the latest plenary session.

As to what Nikkei states, the amendments to two financial laws of Japan – the Financial Instruments and Exchange Act and Payment Services Act aims to tighten local regulations primarily on the crypto trading process. The report further suggests that the amendment extends the regulation by adding legislation for crypto margin trading.

As per the report, the new law includes a change of terminology related to cryptocurrency, where virtual currencies are dubbed ad ‘crypto assets.’ At first, the crypto regulations were introduced by the Japanese lawmakers for crypto margin trading in the month of March ‘2019.

The executive branch of the Japanese government – Cabinet of Japan, authorized draft amendments to the financial instruments and payment services laws in Japan, radically reducing leverage in crypto margin trading at two to four times the initial deposit.

Margin trading represents that borrowed funds are used from a broker to trade a financial asset, essentially forming collateral for a loan.

In the month of April, Taro Aso (Minister of Finance and Deputy Prime Minister – Japan) asked reports not to use the word ‘virtual currency’ and instead use the newly introduced legal term ‘crypto assets.’

As reported earlier,  Russia was constantly delaying the adoption of crypto regulations majorly because of Financial Action Task Force on Money Laundering  requirement in order to legislate the terms cryptocurrencies and bitcoin (BTC) instead of using ‘digital assets.’

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