You can see the rules and regulations in other jurisdictions.
In 2016, the PSA was revised to incorporate regulations governing cryptoasset exchange businesses. Buying and selling 'currency tokens' or 'payment tokens', as well as exchanging them with other cryptoassets, constitutes a cryptoasset exchange business, for which cryptoasset exchanges must be registered with the local finance bureau. As of 1 May 2020, the newly amended PSA has modified the word from 'cryptocurrency' to 'cryptoasset' and imposed more rigorous regulations on these exchanges.1
In accordance with Japanese law, businesses that issue, sell, and exchange tokens, such as ICOs and security token offerings (STOs), may be governed by either the PSA or the FIEA, depending on their structure. In the case of ICOs or STOs, businesses are required to register when their services are regulated by those Acts and fulfil their duties accordingly.1
Tokens are likely to fall under the PSA's regulatory categories of cryptoassets (payment tokens), prepaid payment instruments, and securities (especially ERTRs, security tokens) according to current Japanese law. Below is a description of the regulatory framework that came into effect on 1 May 2020 under the revised PSA and FIEA.1
In the PSA, cryptoassets are defined and exchange businesses are regulated. Current prevailing payment tokens, such as Bitcoin and Ethereum, are considered cryptoassets.1
PSA defines a cryptoasset as an electronically recorded private value other than legal currency and assets denominated in any legal currency that:
