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On the 31st of May, the Japanse House of Representatives amended two cryptocurrency-related laws, the Financial Instruments and Exchanges Act and the Payment services act which are expected to come into effect by April 2020.These two amendments are expected to benefit the growing market of Japan which has over 60% global share in terms of trading percentage and is welcomed by a mixed reaction from the industry.
The Payment Services Act:
This new law will revise the term "Virtual Currency" to "Crypto Currency" and suggesting it would be a better term to bring parity with industry terms and terminologies.
The new law will bring tighter restrictions on custodian services making it mandatory for the custodian services to share an equal amount of risk and accountability compared to exchanges.
The amendment also requires the exchanges to change the way they store their users' crypto assets. The exchanges would have to manage the users' crypto assets separately to their internal cash flows meaning they would have to hire a third-party operator to store user's crypto assets.
The new regulations have also included anonymous coins into its area of impact which means FSA earlier statements which indicated strong actions against anonymous coins that were potentially used for money laundering could indeed be carried out in a different manner altogether.
The Financial Instruments and Exchanges Act:
To define initial coin offerings and security tokens under FIEA, the document introduced the concept of electronically recorded transferable rights. ERTRs are tokens which are issued in expectations of profits.
When the amendments go live in April 2020, crypto-asset derivative transactions will be regulated under the FIEA. The law does not specify the marding rates although Japan Virtual Currency Exchange Association a major self-regulatory organization in Japan has guidelines that propose to restrict the margin rates by four times or even lower.
The FIEA prohibits anyone to be involved in activities such as dissemination of rumors, usage of fraudulent means for purposes of selling or purchasing or engagement in any transaction with respect to crypto-assets or asset derivative transactions for purposes of engagement in any crypto and the likes.
Amid all these developments in the Japanse Crypto Market, Wirex is Now a Step Closer to Launching Crypto Services In Japan.
Tokyo – Today, Wirex Japan Limited officially became a type II member of the Japan Virtual Currency Exchange Association (JVCEA) - a vital and hard-earned step towards being able to
offer the full range of Wirex services to customers in Japan
Wirex Japan Limited became only the 8th financial services company in Japan to become a type II member of the JVCEA. It is a notable achievement for the 100% subsidiary of Wirex Limited on the verge to be recognized as a crypto-asset exchange service provider.
Japan has been leading the world of cryptocurrency and is one of the biggest if not the biggest market in the world. The Financial Services Agency(FSA) of Japan suggesting that there were over 3.5 million people trading a combined annual $600Bn + in Japan in 2017. When trading % of Japan is compared with the total global trading, Japan represents about 60% of the global BTC trading volume. The global exchange, Binance, has ranked Japan as it’s second-largest market in the world back in 2018. This clearly highlights the prowess of the Japanse cryptocurrency market.
For any market to thrive and outperform itself, laws and regulations must be effective to ensure it's fundamentally sanctity and Japan is one of the leaders in this area. Companies have to undergo rigorous and comprehensive due diligence before they are allowed to practice in Japan.
Wirex's application for a type II membership had to undergo unbiased scrutiny. During the 18 months-long evaluation, the company went through a thorough evaluation based on multiple compliances, security, KYC and Anti-Money Laundering process, and many other evaluations.
“We welcome the level of due diligence shown by the JVCEA - by adhering to their rules, we ensure that Wirex remains at the forefront of compliance, security and regulatory best practice. The acquisition of type II membership is a proud milestone for Wirex and brings us closer to being fully operational in Japan.”
Pavel Matveev, Wirex cofounder
The next step for Wirex is to get type I membership which will establish them as a legal Crypto Asset Exchange Service Provider.
About Wirex:
Wirex is a UK-based, FCA-regulated fintech company that provides its customers with an alternative to conventional financial institutions by connecting traditional and new digital ecosystems on one borderless payment platform.
Wirex gives its customers the power to use their money, their way. Whether they use cryptocurrencies, traditional currencies or both, Wirex’s advanced solutions ensure that their customers no longer have to deal with the traditional barriers or costs associated with a simple exchange or transaction.
Wirex is a pioneer in the crypto market and launched the world’s first Visa card that allows customers to convert and spend their cryptocurrencies wherever Visa is accepted. The company now has over 2 million users in 130 countries and has processed over US$2bn of transactions.
Contact Info:
Name: Wirex
Email: Send Email
Organization: Wirex
Website: https://wirexapp.com/
Release ID: 517442
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