A coming report from Nomura Research Institute told that in spite of new laws aimed at bitcoin, another cryptocurrencies and digital moneys, a lot of must be done to bring clarity to the innovation Japan’s technology.
A bill, which was written by Yasutake Okano, was passed by Japan’s legislature. This bill brought internal Japan’s bitcoin exchanges under the present “anti-money laundering” and “know your client” regulation by categorizing them as a sort of prepaid payment tool. Yasutake Okano thinks that the Payment Services Act review do not go far enough. He believes that this technology should be explored in more detail, which may entail additional modification of the Banking Act and Exchange Act.
As an example, this report notices that while the Payment Services Act embraces transferring of cryptocurrencies and other different digital currencies, this can be done just for payments up to ¥1m, which is about $ 9,557. All this crates the actual limit for prepaid tools.
“The PSA’s ¥1m limit on transactions lower than its purview is seen as disrupting paying services’ utility for cross-border transactions.”
Moreover, Yasutake Okano said that a lot of clearness is required on how the tax acts ought to treat cryptocurrencies and other digital currencies. All these would move regulation of Japan according to solutions made by the European Court of Justice. So, while Japan’s tax code rids specific trades in currency, this does not introduce in bitcoin and other digital currencies trades.
From the other hand, the report established that the new limitations can work as a “barrier to entry” for cryptocurrency and other digital currency exchange businesses. All in all, it offered some downsides may be equilibrated by a boost in client trust.