Japan’s FSA introduces new framework that divides crypto into two categories

The FSA of Japan has published a discussion document on cryptographic regulations that seek to classify digital assets into two distinct categories.

According to a recent report By Coinpost, the country Financial service agency Asked public comments concerning a discussion document entitled “Verification of the state of the system linked to cryptographic assets”. The financial guard dog will collect opinions on the new frame of cryptocurrency introduced by the discussion document until May 10, 2025.

The document presents a double approach to regulate the crypto, by dividing the cryptographic assets into two different categories according to the distribution of funds. The first category is called type 1, which includes cryptographic assets used for commercial purposes or to generate funding for the parent project. These include altcoins of emerging projects that still need community funding to continue to grow.

While the other category, type 2, includes more decentralized cryptographic assets or more established by nature. Type 2 cryptocurrencies include Bitcoin (BTC) and Ethereum (Ethn), which does not publish tokens to collect funds for commercial purposes. These tokens are called “non -commercial or non -commercial crypto”.

Depending on the category that virtual assets fall, they are subject to a different set of cryptographic regulations, adjusted to adapt to the characteristics of each type.

Japanese The FSA said that with type 1 cryptographic assets, regulators feel a high need to put pressure for more transparency of projects to disclose information to potential traders about which funds would be used.

Consequently, type 1 tokens transmitters should disclose detailed information on the objective of their funding, the details of the project and the risks associated with investment in the project among others. We will expect them to comply with the regulations of the Japanese FSA, which include occasional disclosure obligations.

Type 1 crypto regulations would come into force once the project has collected a large number of general investors. The FSA said it would also examine whether some type 1 projects are security tokens regulations.

On the other hand, the FSA will not be treated directly with the transmitters of type 1 cryptographic projects. Indeed, the financial agency considers that it is difficult to identify a specific transmitter and to impose obligations. Thus, they will apply regulations concerning type 2 cryptocurrencies on exchange platforms.

In this context, Crypto exchange companies would be required to provide FSA information on significant fluctuations in type 2 crypto prices that have an impact on the market.

“It is possible that correspondence is mainly done through exchange companies,” said FSA in the policy plan.

According to Coinpost, the committee plans to take into account regulatory trends in other countries and public comments before finalizing the cryptographic regulatory framework.

As before reported By Crypto.News, the FSA said that it would revise the law on financial instruments and exchange. The agency aims to submit changes to Parliament in 2026. Under the revision, cryptocurrencies will no longer be considered as payment tools, but rather as its own category of financial products.