Japan’s Minister of Finance and deputy prime minister Taro Aso has urged reporters to stop using the term virtual currencies and switch to the newly-proposed legal name crypto assets.
As Cointelegraph Japan reports today, the minister’s insistence on the use of the new term comes following the Japanese cabinet’s approval of draft amendments to Japan’s financial instruments and payment services laws, which in March established a legal name change for cryptocurrencies as “crypto assets,” formerly designated in the country as “virtual currencies.”
As Cointelegraph Japan notes, the FSA has nonetheless stressed that the new definition is a legal name change only, and that there is no enforcement for the mandatory use of the term by industry participants. To protect investors, it is essential for us to conduct a proper and strict review.”
Aso noted that two new crypto asset broker-dealers had been registered this week by the FSA, Rakuten Wallet and Decurret — the latter of which counts a former administrative vice minister at Japan’s Finance Ministry as one of its directors.
As Cointelegraph has previously reported, the FSA’s proposal for a redefinition of virtual currencies as crypto assets was presented as a move that could help ensure that “traders will no longer purchase them believing that they are legal tender recognized by the government.”
Alongside the redefinition, the recent amendments to Japan’s financial instruments and payment services laws included limiting leverage in crypto margin trading at two to four times the initial deposit, among other new rules.