Japan’s FSA clarifies its position on non-custodial wallet services utilizing authentication technology.
The FSA says these wallets do not qualify as crypto asset trading businesses.
This decision seeks to eliminate legal uncertainties within the crypto industry.
Japan’s Financial Services Agency (FSA) has said that non-custodial wallet services using authentication technology are not crypto asset trading businesses. This decision, made through the “gray area elimination system,” aims to eliminate legal uncertainties within the crypto industry.
With a non-custodial wallet, users can store and manage assets securely. The wallet lets users keep complete control over their private keys, without central administrators, a decentralized approach used by industry leaders Metamask and Phantom.
The FSA’s recent judgment on non-custodial wallets was made under the Industrial Competitiveness Enhancement Act. The gray area elimination system, which is a key part of the act, aims to foster innovation by making regulatory frameworks for emerging businesses clearer. In this process, the Ministry of Economy, Trade and Industry asks the Financial Services Agency …
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