The financial regulator of Japan, the Financial Services Agency (FSA) is considering changing the legal basis for how to regulate the currency of cryptocurrency, local media Sankei reported July 3, the FSA is reportedly considering setting up crypto exchange exchanges by the Financial Instruments and Exchange Act (FIEA) current law, the Payment Services Act. According to Senkai, this means that the exchange will have stronger customer protection. FIEA requires securities firms to manage customer and securities funds, such as shares, separately from company assets, Under current law, cryptocurrency is placed as a means of payment equal to electronic money. If the FSA begins to regulate the exchange market under FEIA, then the crypto currency will be treated as a financial product. FIEA will also open the possibility of introducing crypto derivatives such as Exchange Traded Funds (ETF)............................,
## >Under current law, cryptocurrency is placed as a means of payment equal to electronic money. If the FSA begins to regulate the exchange market under FEIA, then the crypto currency will be treated as a financial product. FIEA will also open the possibility of introducing crypto derivatives such as Exchange Traded Funds (ETF) Sankei writes that 523 million NEMs stolen in Coincheck earlier this year contributed to the FSA considering different legal grounds for the crypto exchange market. After the hack, the FSA launched an investigation into 15 unregistered exchanges, where it uncovered various security and regulatory shortcomings in stock exchange operations. 
Earlier this month, the Virtual Currency Exchange Association (JVCEA) announced a new set of rules. The set of rules aims to be more in line with existing anti-money laundering (AML) regulations, and will also ban the trading of cryptocurrency anonymity such as Monero and Zcash.
