Japan is taking a strategic step towards cryptocurrencies.
According to the latest development, Japan’s Financial Services Agency (FSA) has published a proposal that aims to categorize cryptocurrencies according to the distribution of funds.
At this point, the FSA plans to separate Bitcoin (BTC) and cryptocurrencies into two categories in order to better regulate them, aiming to make crypto rules more effective and easier to implement.
The FSA has sought public input before finalising and presenting its proposal. It has stated that it is open to comments and suggestions until 10 May 2025.
Bitcoin and Cryptocurrencies Will Be Divided Into Two Categories!
According to the FSA’s proposed regulatory scheme, there is a two-tiered system. Type 1 category includes tokens used to raise funds for a business or core project. This includes new altcoin projects that still need funding to grow.
Under the Type 2 category, there are cryptocurrencies that are more decentralized or have a more established presence. Top cryptos like Bitcoin and Ethereum (ETH) that do not raise funds for a business fall into the second category.
The FSA notes that cryptocurrencies will be subject to different regulations depending on which category they fall into.
Japan has been making significant efforts to support the growth and regulation of the crypto industry. Despite its historically restrictive stance, Japan is taking a more moderate approach to crypto regulation.
*This is not investment advice.
