Japan’s Financial Services Agency has proposed treating Bitcoin and other digital currencies in the same way as conventional currencies, according to country’sNikkei news service.
The regulating agency’s legislative changes identify bitcoins and other cryptocurrencies as conforming to the same functions as fiat currency. These changes will be offered during the ordinary session of Japan’s legislature, the Diet, and may become law by the end of the session
By the FSA’s definition, digital currencies are required to be a medium of exchange, in other words an instrument for purchasing goods and services, and exchangeable for legal tender through purchases or trades.
Exchanges and companies dealing in digital currencies will be required to register with the FSA and subject to greater oversight.
The FSA believes that the country’s new digital currency regulations will strengthen consumer protection as well as stimulate growth in the digital economy and financial technology sector.
The move by the FSA is major development considering the 2014 collapse of Japan-based MtGox, the world’s largest bitcoin exchange at the time.
