Japan plans tough new rules for crypto exchanges: What liability reserves actually mean

Japan is shifting its cryptocurrency regulation from payments law to securities law, which will impose stricter disclosure requirements for Initial Exchange Offerings (IEOs) and increase scrutiny on unregistered platforms. This move reflects a significant change in the regulatory landscape for digital assets in the country.

Animoca and Solv have announced a partnership aimed at assisting Japanese Bitcoin companies in generating yield through various financial mechanisms, including lending markets and liquidity provisioning. This initiative is expected to enhance the operational capabilities of these companies in a competitive cryptocurrency landscape.

Michael Saylor announced that Strategy will not issue preferred equity in Japan, allowing Metaplanet a 12-month head start in its financial strategies. This decision comes as Metaplanet plans to raise approximately $135 million through the issuance of Class B perpetual shares to expand its Bitcoin reserves.

South Korea is considering implementing a strict no-fault compensation law for cryptocurrency exchanges, mandating that they fully reimburse users for losses incurred due to hacks or IT failures. This proposed legislation reflects a shift towards consumer protection similar to that of traditional banking systems.