Japan Eyes New Crypto Regulations, Classifies Bitcoin, Ethereum & Utility Tokens

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Japan Eyes New Crypto Regulations, Classifies Bitcoin, Ethereum & Utility Tokens

The Financial Services Agency of Japan is taking a strategic step towards crypto regulation. In the latest development, the FSA released a discussion paper that intends to classify digital assets into categories, based on the distribution of funds.

Notably, Bitcoin, Ethereum, and similar decentralized cryptocurrencies will be included in the Type 2 category, while utility tokens are accommodated in Type 1.

Crypto Regulation: Japan Proposes for Two-Category Classification of Digital Assets

In a recent paper entitled “Verification of the state of the system related to crypto assets,” Japan’s Financial Services Agency has sought the public opinion on classifying digital assets. The new crypto regulation framework aims categorizing digital assets into two, based on fund distribution.

In detail, the paper outlines that the digital assets will be classified into Type 1 and Type 2.

Type 1

Type 1 covers crypto assets used for business purposes or to fund the parent project. This includes altcoins from emerging projects that require community funding to grow. This category includes utility tokens. The proposal states, “For crypto assets of type 1, there is a high need to eliminate the information asymmetry between issuers and users regarding the purpose of use of funds raised and the content of projects, etc.”

Type 2

Type 2 covers digital assets that are more decentralized or have a more established presence. Top cryptocurrencies like Bitcoin and Ethereum, which do not raise funds for a business, are included in the second category. They classify these as non-fundraising or non-business crypto.” The proposal notes, “For crypto assets of type 2, there are many that cannot be identified as specific issuers, so it is difficult to impose an obligation to disclose and provide information on issuers.”

Japan’s Crypto Regulation: A Closer Look

Japan has been taking efforts to bolster the crypto industry’s growth and establishment. Despite its historical restrictive stance, Japan has taken a more nuanced approach to crypto regulation. For instance, the authority considers to lift its ban on crypto exchange-traded funds (ETFs), sparking enthusiasm.

The country’s latest move to classify digital assets aligns with Japan’s broader crypto regulations. Recently, the FSA announced its plans to categorize cryptocurrencies as financial products. These moves highlight the country’s proactive vision of overseeing the crypto market.

The post Japan Eyes New Crypto Regulations, Classifies Bitcoin, Ethereum & Utility Tokens appeared first on CoinGape.

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Donald Trump Threatens Additional 50% Tariff on China, How Will Crypto Market React?

Donald Trump Threatens 50% Tariff on China, How Will Crypto Market React?

United States President Donald Trump is not giving up on his plans to make nations like China accept the terms of his reciprocal tariffs, which he unveiled last week. Countries have started announcing counter-tariffs, exacerbating the long-drawn trade war that has continued to affect the crypto market.

President Donald Trump Issues New Warning to China

As President Donald Trump revealed and broadcasted on X, the US will levy an additional 50% tariff on China if the Asian giant fails to lift its 34% counter tariff. After Trump’s reciprocal announcement on April 2, China responded with a 34% level.

This move was unacceptable to President Donald Trump, who said China has already imposed a record-setting tariff. The US President’s ultimatum to China was April 8, and if the nation fails to comply, it will respond in kind with 50% of the import charges.

In his post on Truth Media, the US President noted that his administration will continue to negotiate with other countries that have reached out. However, he said all negotiations with China would be halted immediately if China’s levy on US imports were not lifted.

Mexico, Canada, Japan, and the European Union are among the nations looking for a renewed deal with the US.

Impact of Tariff Moves on Crypto Market

As seen in the crypto market over the past few weeks, the sentiment around the trade war has sparked concerns about nascent asset classes. As reported earlier by CoinGape, Bitcoin crashed to $74,00 on concerns that more tariffs and economic instability are in view.

The same bearish outlook is seen for all the altcoins, from XRP to Solana and Cardano. Beyond this outlook, the current trend suggests no aspect of the market is safe, with intense volatility still at play.

Considering the nature of stock market losses, the industry is now very sensitive to fake news. Earlier, BTC’s price rebounded to $80,000 on a fake update that President Donald Trump had suspended the tariff implementation for 90 days. If the countries do not reverse the trend, more fluctuations may come.

Bitcoin and Altcoin Price Outlook

At the time of writing, the price of Bitcoin has pared off some of its losses and was trading at $78,961.40, down by 1.6% in 24 hours. Within this period, the coin has moved between two price extremes, including a low of $74,436 and a high of $81,119.06.

Altcoins are also also staging a comeback with Ethereum trading for $1,556.42 atop a 7.01% decline. XRP, Dogecoin and Solana are also down by 6.04%, 5.11% and 3.31% as of writing.

Market experts like Arthur Hayes have predicted Bitcoin dominance to hit 70% with the market likely to stage a rebound. If achieved, altcoins may also stage a sustained rebound moving forward.

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