Financial System Council: Examination of the System Surrounding Crypto Assets
The 55th General Meeting of the Financial System Council and the 43rd Joint Meeting of the Financial System Subcommittee, jointly held on Wednesday, June 25, reviewed the current status of and the regulatory framework for crypto assets in Japan.
The regulatory approach aims to balance user protection with innovation promotion, recognizing cryptocurrency's potential role in Japan's digital economy development. The framework acknowledges that while cryptocurrencies have high volatility, they can serve as alternative investments for sophisticated investors with appropriate risk assessment capabilities.
The discussion document emphasizes that healthy Web3 development could contribute to solving Japan's social challenges and improving productivity, while blockchain-based cryptocurrency trading expansion could advance the digital economy. However, this must be balanced against the need for robust consumer protection and market integrity measures.
This comprehensive regulatory review represents Japan's effort to create a modern, balanced framework for cryptocurrency regulation that protects consumers while fostering innovation in the digital asset space.
