ChainCatcher news, according to CoinPost, the Financial Services Agency of Japan has issued a warning letter to five overseas exchanges engaged in cryptocurrency trading without registration.The exchanges that received the warning include:KuCoinbitcastle LLCBybit Fintech LimitedMEXC GlobalBitget LimitedAccording to Japanese law, companies engaged in cryptocurrency trading must complete registration with the Financial Services Agency or the local financial bureau. Unregistered exchanges are not regulated by the Financial Services Agency of Japan, making it impossible to confirm whether they properly manage key operations such as the separation of customer assets. In the event of a dispute or unexpected situation, customers will not be protected by Japanese authorities. Additionally, customer assets will not enjoy protections or compensation based on Japanese law, facing additional risks.

ChainCatcher news, according to Coinpost, the Financial Services Agency of Japan has issued a statement believing that "unmanaged wallet services" using certification technology do not fall under the category of cryptocurrency trading businesses (managed businesses). This judgment is seen as a way to help alleviate legal uncertainties in the cryptocurrency (virtual currency) industry.An unmanaged wallet is a digital wallet for cryptocurrency assets where users can manage their own private keys. This method of bypassing a central administrator is the foundation of widely adopted services in the industry (such as Metamask and Phantom).This judgment was made through the "Gray Zone Elimination System" based on the Act on Strengthening Industrial Competitiveness. This system aims to promote innovation by clarifying the regulatory applicability in emerging businesses in advance. The relevant procedure was requested by the business minister (in this case, the Ministry of Economy, Trade and Industry) to the regulatory minister (the Financial Services Agency) for confirmation.

ChainCatcher news, according to the official website, the Japanese Financial Services Agency stated that based on Article 63-16 of the Securities and Exchange Act, the Kanto Local Finance Bureau issued a business improvement order to the cryptocurrency exchange DMM Bitcoin.

ChainCatcher News, the Financial Services Agency of Japan held its first meeting of the Fund Settlement Law Revision Working Group on the 25th, beginning the review of regulations related to the fintech era, including crypto assets and stablecoins. The meeting aims to address the diverse needs brought about by the digitalization of financial services and to promote a balance between user protection and healthy market development.During the working group meeting, discussions were held on how to design a system for the rapidly evolving financial business, covering areas such as decentralized finance (DeFi), cashless payments, and fintech. The Financial Services Agency will strive to ensure the stability and competitiveness of the Japanese financial system based on international trends.One focus is to strengthen the regulation of crypto asset exchanges. The Financial Services Agency will learn from the lessons of the FTX bankruptcy in November 2022 and consider introducing mandatory requirements for exchanges to hold assets domestically under the fund settlement law framework, in order to enhance the protection of user assets in the event of an exchange bankruptcy.Discussions on stablecoins also aim to promote their use. Currently, specific trust-type stablecoins are subject to the same regulatory standards as bank deposits, but other countries have greater flexibility in the operation of supporting assets. Japan is also considering adjusting relevant regulations.

ChainCatcher News: At a meeting of the working group on the revision of its funding law, the Financial Services Agency of Japan discussed providing a more convenient mechanism for businesses to handle crypto assets (virtual currencies). Participants believed that reducing the burden on companies would encourage the participation of large domestic gaming companies and promote research and development in the related blockchain ecosystem. The meeting also mentioned that as the virtual currency market expands, discussions about exchange regulation and new rules are becoming more frequent.Liberal Democratic Party Web3 project group leader, Member of Parliament Hirakawa, pointed out that unoptimized tax issues pose obstacles to the establishment of startups, leading to a drain of talented individuals and companies overseas.The Financial Services Agency emphasized that tax reform has addressed the issue of direct taxation on spontaneous tokens, but challenges remain in auditing non-mainstream tokens.

ChainCatcher news, according to CoinDesk, the Financial Services Agency (FSA) of Japan stated in a review of tax reform documents that "regarding the tax treatment of cryptocurrency transactions, it is necessary to consider whether cryptocurrencies should be regarded as financial assets that should become public investment targets."Currently, the country taxes cryptocurrency profits as income, with a tax rate of up to 45% for individuals with income exceeding 4 million yen (approximately $276,000), while the capital gains tax rate for selling securities such as stocks is a flat 20%. Changes to this system could lead to a reduction in taxes for some cryptocurrency investors.

ChainCatcher news, according to Coinpost, the Financial Services Agency of Japan has released the tax reform requirements for the fiscal year 2025, which include regulations related to crypto assets (virtual currencies). The section of the reform plan titled "Asset Yield Doubling Plan and Realization of Asset Management Nation" for the first time addresses the tax treatment of virtual currency transactions, discussing whether virtual currencies should be treated as financial assets.This tax reform request was proposed by various government agencies and will be reviewed by the ruling party's tax system investigation committee and the National Diet after submission. Although the amendment request has been submitted, a final decision has not yet been made. Over the past two years, there has been a persistent call for tax system reform for virtual currency businesses, and while this specific amendment does not provide detailed explanations, it is the first time that virtual currency transactions have been mentioned.

ChainCatcher news, according to CoinPost, on June 14, the Financial Services Agency of Japan issued a warning to the overseas cryptocurrency exchange "LBank Exchange," stating that it is providing cryptocurrency trading without registration.The Financial Services Agency stated that LBank Exchange "has an unknown location and unknown representatives, and is conducting cryptocurrency asset trading targeting Japanese residents via the internet." Last March, the Financial Services Agency of Japan had warned four companies, including Bybit Fintech Limited, MEXC Global, Bitget Limited, and Bitforex Limited, for providing cryptocurrency trading without registration.

ChainCatcher news, Japan's Finance Minister Shunichi Suzuki stated regarding the improper outflow of cryptocurrency assets from DMM Bitcoin: "We will thoroughly prevent such incidents from happening again." According to the head of the Financial Services Agency of Japan, the agency has issued a report request order to DMM Bitcoin under the Fund Settlement Act, demanding an investigation into the reasons and a compensation policy for customers.Previous news, approximately $300 million worth of Bitcoin was stolen from DMM Bitcoin's wallet, and the platform has implemented restrictions on some services.

ChainCatcher news, the Financial Services Agency (FSA) of Japan encourages financial institutions in the country to strengthen monitoring of "illegal" transfers to cryptocurrency exchange providers. An analysis by the National Police Agency concluded that the damage caused by fraud related to illegal remittances is primarily due to transfers made using cryptocurrencies.The FSA encourages financial institutions to further enhance user protection based on risk and suggests that "if the sender's name differs from the account name, financial institutions should stop transferring to cryptocurrency exchange service providers."

ChainCatcher news, Coinpost reports that the Financial Services Agency of Japan has announced a revision to the definition in Article 2 of the Financial Instruments and Exchange Act, aiming to grant members of limited liability type DAOs the same treatment as ordinary LLC members regarding rights tokens. This measure is expected to ease the regulation on the rights of tokenized limited liability company employees and simplify DAO operations.

ChainCatcher news, according to Cointelegraph, Japan's main financial regulatory agency, the Financial Services Agency (FSA), has decided to take control of cryptocurrency regulation and proposed amendments to the crypto asset tax law. The FSA submitted this request on August 31, suggesting the exemption of domestic companies from the year-end "unrealized gains" tax on cryptocurrencies.In the legal provisions of some countries, taxes are only required when cryptocurrency assets are sold for fiat currency, but in Japan, they are taxed annually. The amendment proposed by the FSA has the potential to take effect, and this reform will improve the domestic Web3 environment in Japan and promote the development of startups utilizing blockchain technology.

ChainCatcher News: The Financial Services Agency of Japan has announced its financial policy guidelines for the 2023 fiscal year (from July 2023 to June 2024), which mention the promotion of digital development and initiatives for advancing Web3, including the implementation of measures for digital currencies and crypto assets. This includes the promotion of a registration review system to support the smooth issuance and circulation of stablecoins, as well as encouraging the establishment of self-regulatory organizations.

ChainCatcher news, according to Nikkei, the Japanese government announced that the Commissioner of the Financial Services Agency, Junichi Nakajima, has resigned, and Teruhisa Kurita, the Director-General of the Comprehensive Policy Bureau, has been appointed to succeed him on July 4. Teruhisa Kurita, 59 years old, is currently the head of the Strategic Development and Management Bureau under the Financial Services Agency, which specializes in handling cryptocurrency and fintech issues. (Source link)

ChainCatcher News: The Financial Services Agency of Japan issued warnings to four overseas cryptocurrency exchanges for providing cryptocurrency trading without registration in Japan. The four platforms are Bybit, MEXC, Bitget, and Bitforex. Among them, Bitforex is headquartered in the Republic of Seychelles, while Bybit, MEXC Global, and Bitget are based in Singapore. (Source link)

ChainCatcher News: The Kanto Local Finance Bureau of Japan has filed an administrative lawsuit against FTX Japan, stating that FTX Japan's assets are unrelated to overseas entities and that all possible measures must continue to be taken to prevent such information leakage. It also requires FTX Japan to retain its assets within Japan from March 10, 2023, to June 9, 2023. (Source link)

ChainCatcher News: The Financial Services Agency of Japan will lift the circulation ban on overseas-issued stablecoins in Japan in 2023. This measure will be implemented after the relevant guidelines are amended, in conjunction with the latest "Funds Settlement Act" that will take effect in 2023.For domestically issued stablecoins, issuers are required to prepare reserve assets as collateral, and the issuers are limited to banks, registered transfer agents, trust companies, and others. Additionally, regarding the overseas-issued stablecoins that are scheduled to be unbanned, domestic practitioners handling these tokens are obligated to safeguard the assets, and it is also proposed to set the remittance limit at 1 million yen per transaction. The Financial Services Agency stated that it will begin soliciting opinions after December 26. (Coinpost)

ChainCatcher news, according to Nikkei, the Financial Services Agency of Japan has extended the business suspension order for FTX Japan, originally set to expire on December 9, as FTX Japan is still unable to provide normal deposit and withdrawal services, and it will take time to refund customer funds.According to a previous report by ChainCatcher, on November 10, the Financial Services Agency of Japan ordered the suspension of FTX Japan's operations and established a "written business improvement plan." (Original link)