Japan is now one of the most progressive nations, which opens up a positive climate for cryptocurrencies. Japan had recognized Bitcoin and the other leading cryptos as legal property holdings under PSA (Payment Services Act). Based on these regulations, Japan’s crypto exchanges need to be registered with the AML/CFT obligations and comply with its rules. As we all know, Japan is one of the biggest global markets of Bitcoin now. Back in 2017, the National Tax Agency of Japan ruled that the gains over cryptocurrency need not be categorized as any miscellaneous income, and the investors will be taxed accordingly.
The recent regulations related to Japan’s cryptocurrency market include the PSA amendments and the Financial Instruments and Exchange Act (FIEA) regulations. This came into effect from Many 2020. points out thatall these amendments have projected a term as “crypto-asset” instead of its normal usage as virtual currency. This places bigger restrictions on managing the users’ virtual money and stricter crypto derivatives trading regulations. Abiding by these rules, the crypto customer service providers in Japan fall under the broader scope of PSA, while the derivatives businesses come under FIEA.