Japan’s Financial Services Agency Renames Cryptocurrencies To Prevent Confusion With Legal Tenderbr>
Japan’s Financial Services Agency (FSA) has decided to place the names of bitcoin and other cryptocurrencies into a category called “crypto-assets.”
On December 14, an FSA advisory panel compiled a report, pointing out that the term “virtual currency” could cause misunderstanding, and requested a change of the term. The FSA will reportedly revise relevant laws and regulations, such as the Payment Services Law, which stipulates the use of virtual currencies.
“By calling all cryptocurrencies crypto-assets, the government hopes that traders will no longer purchase them believing that they are legal tender recognized by the government,” The Japan News reported.
By revising relevant laws, the agency will reportedly order crypto companies to implement strict management systems to protect users in the event of such problems as a cash outflow.
During the G20 summit in Buenos Aires, Argentina, which took place in March of this year, finance ministers and central bank governors of 20 major economies determined that cryptocurrency should be classified as an asset, not a currency or security, because it lacks the key attributes of sovereign currencies.
“We acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly,” the G20 said at the time. “Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing. At some point they could have financial stability implications.”