Japan Plans to Review Its Crypto Rules: Bloomberg

• Japan is set to review its rules for the crypto sector, Bloomberg reported on Monday.
• It will assess whether or not the nations approach of regulating crypto under the payments act is affective.

Japan is set to review its rules for the crypto sector, Bloomberg reported on Monday, citing an anonymous official at the nations Financial Services Agency.

The review will occur over the coming months and will assess whether or not the nations approach of regulating crypto under the payments act is affective. It could also pave the way for domestic funds investing in digital asset tokens.

The regulator is looking to see if its existing crypto rules offer enough protection for investors. It may conclude that the act itself needs changes or crypto needs to be reclassified as a financial instrument and fall under the country's investment law, the Bloomberg report said. This could pave the way for lower taxes for digital assets, something the country has been exploring.

Nations around the world have been looking to clarify their approach to crypto. The U.K. decided to make crypto a regulated activity last year and bring the sector under its financial services rules, Europe created bespoke rules for the crypto sector known as the Markets in Crypto Assets rules, while, South Africa recently opened up its licensing regime for the sector.

CoinDesk reached out to the Financial Services Agency.