Japan's FSA Plans to Strengthen Cryptocurrency Regulations

Japan's Financial Services Agency (FSA) is planning to enhance penalties and regulations for unregistered cryptocurrency operators. According to ChainCatcher, the FSA intends to shift cryptocurrency-related regulations from the Payment Services Act to the Financial Instruments and Exchange Act to bolster investor protection. The proposed changes would increase criminal penalties for unregistered cryptocurrency sales from the current 'up to 3 years imprisonment or a fine of up to 3 million yen' to 'up to 10 years imprisonment or a fine of up to 10 million yen, or both.' Additionally, the Securities and Exchange Surveillance Commission will be granted authority to conduct compulsory on-site inspections and evidence seizures as part of criminal investigations. The legal designation for registered operators is also set to change from 'cryptocurrency exchange operators' to 'cryptocurrency trading operators.' This move comes amid a rise in disputes related to highly speculative meme tokens.