FSA’s SAND and Move to Affect These Altcoins! – Cryptokoin.com

Japan’s Financial Services Agency (FSA) is clarifying the eligibility of NFTs as crypto assets. This move is likely to affect NFT coin projects like Sandbox (SAND).

FSA clarifies interpretation of crypto assets

cryptocoin.com As we reported, Japan’s Financial Services Agency (FSA) made public inquiries regarding the eligibility of various tokens as crypto assets and how to oversee purchased crypto exchange companies in December last year, in a move aimed at addressing the diversification of tokens issued on Blockchain. posted responses to open comments.

The FSA is working to clarify the interpretation of crypto assets under the Payment Services Act. As part of this effort, the agency published a partial revision (draft) of the “Administrative Guidelines (Volume 3: Financial Companies)” on December 16, 2011, and public comments were sought at that time.

The amendment (draft) focused mainly on the interpretation of the suitability of crypto assets for various tokens issued on the Blockchain, clarifying supervisory responses to crypto exchange service providers in light of the diversification of business models. Among other things, it includes supervisory responses to the crypto exchange service provider in the event that the crypto exchange service provider is sold or transferred due to the transfer of the shareholder by the main shareholder of the crypto exchange service provider.

FSA’s NFT move could impact SAND and these altcoins

The FSA has now released its views on the eligibility of Non Fungible Tokens (NFTs) as crypto assets, based on the revision (draft) of the Administrative Guidelines (Volume 3: Finance Companies) and public comments. NFTs are digital assets that represent ownership of a unique item such as a work of art or a collection and published on a Blockchain. The largest of these in terms of market value are ApeCoin (APE), Internet Computer (ICP), The Sandbox (SAND), Decentraland (MANA) and Theta Network (THETA).

SAND
Top 10 NFT coin projects by market cap / Source: CoinGecko

According to the FSA’s response, NFTs can be considered crypto assets if they meet certain criteria, such as being transferable or exchangeable, having a market-determinable value, and being registered on a blockchain. The agency also highlighted the need for proper risk management and transparency in issuing and trading NFTs.

What does the development mean for the crypto market?

The FSA’s response is expected to provide greater clarity to the cryptocurrency industry in Japan, particularly with regard to oversight of crypto exchange service providers. The agency has previously taken a strict stance on regulating the industry to prevent money laundering and protect investors.

With the growing popularity of NFTs and the diversification of tokens issued on blockchains, it’s crucial that regulators keep up with changes and provide clear guidelines for the industry. The FSA’s response is a step towards achieving that goal. It is also expected to have a positive impact on the development of the cryptocurrency market in Japan.

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