Japan is considering introducing new lightweight legislation for non-exchange crypto intermediaries

TechFlow news — On December 1, according to Ledger Insights, Japan is considering introducing new lightweight legislation for cryptocurrency intermediaries (non-crypto exchanges). Last week, the Financial Services Agency (FSA) presented its proposals to the Payment Services Working Group of the Financial System Council. Intermediaries would be required to provide information to users and would face advertising restrictions. They could also be held liable for losses if issues arise. The FSA is also examining how compensation for damages would be handled.

Currently, existing regulations for other financial service intermediaries not affiliated with large groups require them to provide security deposits to cover potential losses. If an intermediary is associated with a cryptocurrency exchange, the exchange may bear responsibility for any losses.