Cryptocurrency Regulations in China and Japan (December 2024)
In China, cryptocurrency regulations have evolved significantly. Although trading and mining of cryptocurrencies are prohibited for individuals, the government encourages blockchain technologies. Platforms like $Neo and $VeChain have official support due to their alignment with national goals, such as asset digitization and supply chain management. Additionally, initiatives like the Blockchain Services Network (BSN) promote blockchain-based solutions within a regulated environment.
Recently, interest in cryptocurrencies has been revitalized due to a more favorable narrative towards digital assets and the exploration of the digital yuan. However, cryptocurrency-related companies must comply with strict compliance requirements, such as preventing money laundering and protecting user data.
Japan
Japan is known for its balanced approach to cryptocurrencies. The Financial Services Agency (FSA) strictly regulates the sector, with measures focused on preventing money laundering and ensuring investor security. Recently, Japan has relaxed some regulatory processes to facilitate new tokens' access to the market and revitalize the local industry, especially with the inclusion of Web3 and NFT technologies in government policies. Nevertheless, stablecoins like USDT are subject to strict rules, being issued only by banks and authorized platforms.
Both countries are advancing their regulations, but with different strategies: China promotes the use of blockchain in projects aligned with state objectives, while Japan seeks a more competitive and regulated market to attract technological innovations.
