ChainCatcher News, Japan is considering new lightweight legislation for cryptocurrency intermediaries (non-cryptocurrency exchanges). Last week, the Financial Services Agency (FSA) presented its ideas to the Financial System Council's Payment Services Working Group.The FSA provided an example of a gaming application or self-hosted wallet that offers access to third-party applications for cryptocurrency trading services and then switches back to the original application. In many cases, the FSA may consider the application operator to be acting as an intermediary, thus requiring registration as a cryptocurrency exchange. However, if an organization purely acts as a introducer and never touches any funds, this is quite burdensome.Therefore, the government is considering some more relaxed proposals that require intermediaries to register as intermediaries. Intermediaries will be obligated to provide information to users. They will be subject to advertising restrictions and may also bear liability for damages if issues arise.The FSA is considering how to handle losses. Currently, regulations for other financial service intermediaries that do not belong to large groups require a margin to cover potential losses. If the intermediary is affiliated with a cryptocurrency exchange, the losses may be borne by the exchange.