Japan FSA Plans Stricter Crypto Lending Regulations

Japan's FSA Tightens Crypto Lending Regulations

The Financial Services Agency (FSA) in Japan plans to tighten cryptocurrency lending rules by bringing them under the Financial Instruments and Exchange Act.
This move aims to protect investors by closing loopholes, enforcing stricter risk and custody controls, and proposing investment limits for Initial Exchange Offerings (IEOs).
The FSA may also enhance risk management for re-lending and pledging, ensuring asset segregation and mandatory risk disclosure.

Potential Changes for Banks and Digital Assets

Japan's FSA is considering allowing banks to invest in and hold cryptocurrencies like Bitcoin.
This integration would involve strict risk management and capital safeguards.

Advancements in Japan's Digital Asset Sector

Several crypto-related businesses are expanding into Japan, reflecting the country's progress in digital assets.
On Oct. 28, TIS Inc., an IT services company, launched a multi-token platform with Ava Labs, enabling banks to issue and manage stablecoins and security tokens.
The platform supports ERC20 token standards and includes financial-grade security infrastructure.