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Author: Admin | 2025-04-28
April, 2022, The Singapore government passed a law that would require all virtual asset service providers (which includes crypto, since it is classified as a commodity) to get a license that they are functioning according to Anti-momney laundering (AML) and anti-terrorism laws. Singapore will continue to welcome Web 3.0 and companies with services based on the blockchain but will continue to remain cautious about crypto currency trading in the future as well.JapanConcerning CryptocurrenciesJapan’s Financial Services Agency recognized bitcoin as a legal mode of payment. However, despite several news agencies reporting it as legal tender, it is not accepted as one. Recent amendments to the PSA and to the Financial Instruments and Exchange Act (FIEA) in May 2020 introduced the term “crypto-asset” (instead of “virtual currency”). The amendments placed greater restrictions on managing user’s crypto assets and eased the rules on trading of cryptocurrencies. The taxation regime on cryptocurrencies has also changed from the consumption tax which was levied initially to miscellaneous income. This means that users will now not be able to offset the losses in other areas with gains from the sale of bitcoins. Moreover, an additional inheritance tax will be imposed on bitcoins secured from a deceased person.Cryptocurrency exchangesThe infamous Coincheck heist of $530M in 2018 changed the regulatory climate on bitcoins in Japan and called for stricter cryptocurrency regulations. Cryptocurrency exchanges must secure a license from the FSA to operate legally in Japan. This can take up to 6 months to obtain and the exchange will have to be AML and CTF compliant and have robust and fail proof cybersecurity measures in place. The Japanese Virtual Currency Exchange Association (JVCEA) and the Japan STO provide guidance to yet to be licensed cryptocurrency exchanges on compliance.Future legislationsJapan is offering a fairly crypto-friendly regulatory climate. Japan is, however, concerned
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