Japan’s Financial Services Agency (FSA) plans to significantly tighten penalties for selling cryptocurrency without registration. Under current law, unregistered sales carry up to three years’ imprisonment or penalties up to 3 million yen; the proposed revision would raise the ceiling to up to ten years’ imprisonment or up to 10 million yen in fines. The crackdown would also apply to individuals who promote or facilitate over-the-counter, or OTC, crypto derivatives trading while unregistered. The FSA intends to broaden enforcement, including asset seizures and investigations, potentially leading to criminal referrals.
The amendments are expected to be included in a forthcoming special session of the Diet as part of changes to the Financial Instruments and Exchange Act (FIEA). Currently, virtual assets fall under the Payment Services Act, but regulation may shift to the financial instruments regime, bringing stricter investor protections and internal controls. Industry observers view the move as a push to depose unregistered operators and reposition the market around licensed participants. For overseas operators considering entry to the Japanese market, registration requirements and compliance capabilities are likely to become key barriers.
Japan’s Financial Services Agency is planning to tighten penalties for selling cryptocurrency without registration. Under current law, unregistered sales carry up to three years in prison or penalties up to 3 million yen; the proposed revision would raise the ceiling to as much as ten years’ imprisonment or 10 million yen in fines. The crackdown would extend to individuals who promote or facilitate over-the-counter, or OTC, crypto derivatives trading while unregistered. The amendments are expected to be included in a forthcoming special session of the Diet as part of changes to the Financial Instruments and Exchange Act (FIEA).
Currently, virtual assets fall under the Payment Services Act, but regulation may shift to the financial instruments regime, bringing stricter investor protections and internal controls. Industry observers view the move as a push to depose unregistered operators and reposition the market around licensed participants. For overseas operators considering entry to the Japanese market, registration requirements and compliance capabilities are likely to become key barriers.
Japan’s Financial Services Agency is planning to tighten penalties for selling cryptocurrency without registration. Under current law, unregistered sales carry up to three years in prison or penalties up to 3 million yen; the proposed revision would raise the ceiling to as much as ten years’ imprisonment or 10 million yen in fines. The crackdown would extend to individuals who promote or facilitate over-the-counter, or OTC, crypto derivatives trading while unregistered. The amendments are expected to be included in a forthcoming special session of the Diet as part of changes to the Financial Instruments and Exchange Act (FIEA).
Currently, virtual assets fall under the Payment Services Act, but regulation may shift to the financial instruments regime, bringing stricter investor protections and internal controls. Industry observers view the move as a push to depose unregistered operators and reposition the market around licensed participants. For overseas operators considering entry to the Japanese market, registration requirements and compliance capabilities are likely to become key barriers.
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