Japan's Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA), which were passed by the Japanese House of Representatives last year in order to regulate the crypto industry, will come into effect on May 1.
Even though both laws should have come into force this month, their implementation has been delayed.
According to the government's official gazette, the PES and the FIEA will become part of the country's regulatory framework starting next month.
It should be noted these 2 laws are not new, but an amendment to the existing regulations aimed at adapting them to the crypto sector.
Thus, some of the changes have affected the terminology used. In the case of the PES, the term "crypto asset" is now used instead of "virtual currency". However, the changes have gone further, as, for example, restrictions on crypto custody services have been tightened.
Another of the most important changes introduced by these laws is the fact that crypto trading platforms will have to separate clients' assets from their own funds, which means they will be forced to use the services of third parties as well as to use cold wallets.
However, if users prefer to store their assets in hot wallets, the exchanges will have to keep "the same kind and the same quantities of crypto assets" in order to be able to reimburse clients in case of theft.
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