Japan’s House of Representatives has passed a new bill that seeks to amend the country’s laws governing cryptocurrency regulation.
The Financial Services Agency (FSA) prepared the crypto bill earlier this year and sent it to parliament. The House adopted the bill in March, and now the House of Councilors has officially passed during a plenary session.
An FSA statement published on the regulator’s website says that the lawmakers approved the amendment proposals by a majority.
The proposed bill targets amendments to two of Japan’s national laws related to crypto assets: the Fund Settlement Act and the Financial Instruments and Exchange Act. With the approval of the bill, the amended sections of the Acts will come into effect in April 2020.
The amendments, which focus on Japan’s laws as applied to payment services and other financial instruments, are expected to tighten areas of the crypto regulation space in the country. The amended law will now apply robustly to protect users as well help regulators administrate sectors like derivatives trading.
Also noted in the bill was a provision for the institution of robust regulatory oversight on crypto margin trading, with leverage limited to between 2-4 times the deposits.
Other areas of focus include the development of a crypto regulatory framework for crypto assets, especially in mitigating risks like exchange hacks and other nefarious activities.
The FSA also sought to have a legal name for cryptocurrencies established, which will now see the term “crypto assets” adopted instead of “virtual currencies.”
The tightening of regulations for the cryptocurrency industry has been viewed by many within the local industry as a positive move that could set standards for global virtual currency regulation.
Players within the crypto industry in the U.S. have also called on the Securities and Exchange Commission (SEC) to offer more clarity for the crypto space.