The Japanese Financial Services Agency (FSA) is considering new regulations for cryptocurrency brokerages in order to facilitate businesses and ensure a safe customer experience. Currently, these brokerages are subject to the same regulations as full-fledged exchanges, which can hinder innovation and discourage new businesses from entering the market. The proposed regulations would create a separate category for brokerages that connect crypto buyers and sellers without holding funds or managing wallets, reducing the potential for fraud and mismanagement. The FSA is also considering requiring these brokerages to be affiliated with licensed exchanges or payment institutions, who would provide supervision and bear liability for any misconduct. Alternatively, the FSA may impose service restrictions or mandate financial guarantees to cover potential losses. The overall goal is to foster innovation and prevent bad actors without burdening firms with heavy regulations.



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