- Japan’s Financial Services Agency has introduced a proposed framework to classify digital assets into two types.
- Bitcoin and Ethereum fall under Type 2, which includes decentralized cryptocurrencies without centralized issuers or fundraising.
- Utility tokens are categorized as Type 1 and are linked to business projects that raise funds from the public.
The Financial Services Agency of Japan introduced a framework that divides digital assets into separate classification categories. The new strategy moves the financial regulator towards regulating cryptocurrencies by assessing their functions and funding methods. The classification forms part of a wider initiative to enhance crypto industry transparency while protecting investors.
Bitcoin and Ethereum Fall Under Type 2 Category
The FSA proposes to categorize Bitcoin and Ethereum together within the Type 2 classification framework that applies to decentralized…
