The Diet in Japan (the legislature consisting of the Lower and the Upper Houses) has passed a bill today that mandates the regulation of bitcoin and virtual currency exchanges by the Financial Services Agency (FSA) in Japan.
Japan has enacted a bill today that will see the regulation of operators of virtual currency exchanges, a Japan Times report revealed.
The revised law will see virtual currency exchange operators mandated to register with the Japanese Financial Services Agency. The bill also enables the agency to have the authority to conduct on-site inspections and will require operators to follow know-your-customer (KYC) practices.
Bitcoin as an Asset
The new rule and law will define virtual currencies like bitcoin to have “asset-like values”, legally permissible to be used in making payments and an asset that can be transferred digitally.
The bill is essentially a legislative revision to the fund settlement law which, originally, did not recognize bitcoin and digital currencies as equivalents to conventional currencies.