The Japanese Financial Services Agency (FSA) has placed cryptocurrencies into a new legal category called “crypto-assets,” according to English-language local media The Japan News.
By classifying cryptocurrencies this way, the government reportedly “hopes that traders will no longer purchase them believing that they are legal tender recognized by the government.”
The FSA advisory panel compiled a report on Friday requesting the term “virtual currency” be changed since, according to the panel, it could confuse people into believing the asset is legal tender in the country.
Based on the report, the agency will revise relevant laws and regulations, such as the Payment Services Law, which stipulates the use of virtual currencies.
As previously reported, FSA published a draft report outlining the country’s new regulatory framework for cryptocurrencies and initial coin offerings (ICOs).