Japan’s Financial Services Agency (FSA) is looking to regulate cryptocurrency exchanges under a different law. Instead of following the Payment Services Act, the FSA would regulate cryptocurrency exchanges via the Financial Instruments and Exchange Act (FIEA).
In this case, cryptocurrencies will be treated as financial products rather than means of payment.
If the initiative is adopted, companies will be forced to manage money and assets of customers separately from corporate assets, so the clients of exchanges will be more protected.
At the same time, other derivatives of the digital assets, like exchange-traded funds will become available to investors.
