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Japan Revises Crypto Law to Prevent Asset Outflows, Strengthen Investor Protections

  • Japan revised its crypto regulations to prevent asset outflows and strengthen investor protections by introducing a domestic asset holding requirement.
  • The revision aims to address concerns over foreign crypto exchange collapses that have resulted in significant losses for Japanese investors.
  • Key provisions include mandatory domestic asset custody for crypto exchanges, a new intermediary framework for in-app crypto usage, and reforms for stablecoin issuers.
  • The revised Payment Services Act also emphasizes stricter registration and compliance standards, signaling Japan's proactive approach to ensuring market resilience in the digital asset sector.

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