Odaily Planet Daily reported that the Financial Services Agency (FSA) of Japan plans to strengthen regulation of unregistered cryptocurrency businesses and intends to adjust relevant regulations from (fund settlement law) to (financial instruments and exchange act) to enhance investor protection.

According to the proposed plan, the criminal penalties for operators selling unregistered cryptocurrency assets will be increased from the current 'up to 3 years in prison or a fine of up to 3 million yen' to 'up to 10 years in prison or a fine of up to 10 million yen (or both).' At the same time, the Japan Securities and Exchange Surveillance Commission will be granted stronger enforcement powers, including conducting on-site inspections and evidence seizure for criminal investigations.

In addition, the regulatory body plans to change the legal name of registered entities from 'cryptocurrency exchange operators' to 'cryptocurrency trading operators.' One of the backgrounds for the regulatory strengthening is the continuous increase in disputes related to highly speculative Meme tokens. (Nikkei News)