The Chamber’s Token Alliance Adds Japanese Legal Landscape to its “Understanding Digital Tokens” Series
November 19, 2019
The Chamber of Digital Commerce today introduced “Legal Landscapes Governing Digital Tokens in Japan,” the next installment in its “Understanding Digital Tokens” series of reports.
Japan has established itself as a forward-thinking leader in the blockchain and virtual currency space, especially during its G20 presidency earlier this year. It was also one of the first countries to legally accept bitcoin as a form of payment. After the hacks on token trading platforms, the country’s financial regulators worked with industry to create a self-regulatory organization to adopt a regulatory regime that would help the industry develop and protect consumers. This new report describes the effect some of these impactful moments have had on the Japanese token ecosystem, including the regulatory and policy implications.
The report examines Japan’s regulation of virtual currency:
- Regulation of virtual currency under the Payment Services Act, Financial Instruments and Exchange Act, and other laws and regulations;
- Regulations for ICOs; and
- Prepaid payment instruments.
Finally, the report forecasts the outlook for virtual currency regulation in Japan and states that “Some of the advantages [of regulation] include, amongst others, increased market transparency due to clarity around consumer/investor protection requirements, the possibility of using ICOs and STOs for capital raising.”
We hope you enjoy this analysis of the legal landscape governing Japan.