According to Odaily, Japan is set to assess the effectiveness of its cryptocurrency regulations in the coming months, a move that could pave the way for the introduction of cryptocurrency exchange-traded funds (ETFs) in the country. An official from Japan's Financial Services Agency (FSA) stated that the review will determine whether the current regulatory approach under the Payment Services Act (PSA) is adequate. The PSA, initially enacted in 2009, has been amended multiple times by Japanese lawmakers to address the evolving financial services landscape brought about by the emergence of digital currencies.
The PSA recognizes Bitcoin and other cryptocurrencies as legal property. It also mandates that cryptocurrency exchanges must register and comply with the country's anti-money laundering (AML) and counter-terrorism financing (CFT) obligations. This regulatory framework aims to ensure the integrity and security of the financial system while fostering innovation and growth within the cryptocurrency sector.
