Financial Services Agency proposes reforms to the Securities Act to strengthen regulations on virtual currencies

The Financial Services Agency (FSA) has proposed a plan to significantly strengthen regulations on virtual currencies. In a report released on the 2nd, the FSA stated, "Virtual currency regulations will be transferred from the existing Payment Services Act to the Financial Instruments and Exchange Act (FIEA)."
The aim is to strengthen investor protection and bring the cryptocurrency oversight system up to the same level as securities regulations.
The report states that "the problems occurring in the virtual currency market are similar to those previously handled under the Financial Instruments and Exchange Act.
The main issues cited include unclear white papers, inaccurate disclosures, unregistered operations, investment fraud, low risk tolerance, and security issues at exchanges.
"It may be appropriate to handle crypto assets through the mechanisms and enforcement powers of the Financial Instruments and Exchange Act," the FSA said in its report.
However, this report is not legally binding, and the FSA Secretariat has put forward ideas.
The document is an internal review prepared to present the results to the Financial System Council, after which the government will make a final decision on whether to introduce new regulations.