Japan's Financial Services Agency Discusses Stricter Cryptocurrency Lending Regulations

According to BlockBeats, Japan's Financial Services Agency recently held the fifth meeting of the Financial System Council's cryptocurrency system working group. Participants discussed enhancing regulations on cryptocurrency lending activities. The proposed policies will require businesses to establish risk management systems for lenders and pledge contractors, create secure storage management systems for crypto assets, explain risks to customers, and regulate advertising practices. Private lending, such as transactions between institutional investors, will remain unregulated. The meeting also suggested introducing a proposal to cap investments in Initial Exchange Offerings (IEOs). This measure aims to prevent issuers from raising excessive funds from a broad base of general investors without financial audits, which could lead to overinvestment due to sales pressure.