ChainCatcher reported that according to Coinpost, the Japanese Financial Services Agency issued a statement that "unhosted wallet services" using authentication technology do not belong to crypto asset trading business (management business). This judgment is believed to help alleviate legal uncertainty in the crypto asset (virtual currency) industry.
A non-custodial wallet is a digital wallet for crypto assets where users can manage their own private keys. This approach of bypassing a central administrator is the basis for widely adopted services such as Metamask and Phantom.
This judgment was made through the "gray area elimination system" based on the Industrial Competitiveness Enhancement Act. This system aims to promote innovation by clarifying the regulatory application relationship in emerging businesses in advance. The relevant procedure is that the minister in charge of the business (this time, the Ministry of Economy, Trade and Industry) requests confirmation from the minister in charge of supervision (the Financial Services Agency).