Japan's Financial Services Agency details the transition framework for cryptocurrencies under the "Financial Instruments and Exchange Act," simultaneously advancing three major stablecoin settlement projects

BlockBeats News, on April 21, during the 9th BCCC Collaborative Day, Shigeo Shimizu, Director of Risk Analysis at the General Policy Bureau of the Financial Services Agency of Japan, revealed that a bill including the transfer of crypto assets from the “Fund Settlement Law” to the “Financial Instruments and Exchange Act” has been submitted to the Special Diet. This move aims to strengthen user protection, with core measures including requiring disclosure of information by issuers, establishing a new category of “crypto asset trading business,” increasing penalties for unlicensed operators and strengthening enforcement, as well as introducing insider trading regulations and a new fee collection system.

Additionally, in the “Settlement Modernization Project (PIP)” launched by the Financial Services Agency of Japan last November, three ongoing pilot experiments are underway: First, the joint issuance of Japanese yen stablecoins, involving the three major banks and others, to verify efficiency in cross-border settlements for large trading companies; second, on-chain securities settlement, which uses transfer systems to record the transfer of rights such as government bonds and stocks on the blockchain, synchronized with current laws, and enables payment with stablecoins to achieve continuous 24/7 trading and settlement; third, tokenized deposit interbank transfers, which build a transfer mechanism for tokenized deposits between different banks and link with the Bank of Japan’s “Central Bank Digital Currency (CBDC) sandbox project.”