By Staff Writer
So & Sato, a Japan-based law firm specializing in crypto and blockchain released a report comprising aspects of digital assets in the Asian countries.
Lawyers from the firm So & Sato told in an interview to crypto news site that, “The market is highly regulated in Japan. What seems to be a regulatory overkill, at first sight, is likely to help the market to mature in the mid to long term. This will allow more institutional players to enter the market and to increase their stake in the digital asset space.”
Regulations relating to crypto in Japan usually are listed under the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA). Amendments passed for both acts tightening existing regulations enter into force in May.
While local regulations might not be favorable to foreign exchanges at the moment, the law firm implied that it was not a bad time to enter the crypto market in Japan and concluded that the most likely exchanges that could be granted licenses would come from countries such as the United States, where regulations are more thorough.
They believe the regulatory measures are aiding to make Japan stand out as a safe haven for crypto, rather than the wild west of finance that it’s sometimes known for.