The Financial Services Agency of Japan approves a new regulatory framework for crypto assets, introducing a system of intermediary ownership in transactions

ChainCatcher news, according to CoinDesk Japan, the Financial Services Agency of Japan approved the Financial Review Council's working group report on the payment settlement system on February 19. The report underwent seven rounds of discussions and proposes a new regulatory framework for cryptocurrency exchanges and stablecoins.

The report suggests incorporating relevant provisions of the Financial Instruments and Exchange Act into the Payment Settlement Act to enhance user protection in the event of exchange bankruptcies. It also proposes the introduction of a "belonging system" for cryptocurrency trading, requiring intermediaries to be affiliated with specific exchanges and prohibiting them from holding user assets.

Regarding stablecoin regulation, the report allows issuing institutions to allocate up to 50% of their assets to short-term government bonds and specific time deposits, no longer limited to demand deposits. This regulatory framework has been submitted for approval by Financial Services Agency official Katsunobu Kato, and the relevant legislative work is set to begin soon.