Japan’s new virtual currency legislation has
been in effect for almost two months but small- and
medium-sized bitcoin business operators are facing some hurdles
in getting themselves registered with the Financial Services
"The new legislation restricts virtual currency exchanges
and it is possible that small companies may fail to meet the
JFSA standards as only companies with sufficient staff and
capital can be registered," said
Yuri Suzuki, partner at Atsumi & Sakai in Tokyo.
But she added that the lifting of an eight percent
consumption tax, set to be effective on July 1, could boost the
volume of bitcoin trading in Japan.
With the $650 million cyber heist on Tokyo-based bitcoin
exchange Mt Gox in 2014 on the JFSA’s mind, the
regulator has made registration an absolute requirement for
virtual currency exchange business. This has been seen as an
effort by authorities to address digital currency fraud,...