Libeara gears up to offer tokenized Singapore dollar government bonds

Dubai-based crypto exchange Bybit said it will temporarily pause the onboarding of new users in Japan as it adjusts to regulatory changes under the country’s Financial Services Agency (FSA). In a statement released on Oct. 30, the company explained that the suspension is part of its effort to reassess compliance obligations and align with upcoming local standards. Starting Oct. 31 at 12:00 p.m. UTC, Bybit will no longer accept new account registrations from Japanese nationals or residents. The company added that the change will not affect existing customers, whose services will remain uninterrupted for now. The decision landed amid a shifting domestic policy backdrop. Policymakers at the FSA have been weighing the treatment of crypto assets under the Financial Instruments and Exchange Act, viewing digital tokens through the lens of investment products. Officials have pointed to sharp price volatility and cyber-theft risks as reasons to strengthen safeguards for depositors and insured individuals.Photo by Cosmin Georgian on UnsplashBanks and insurers face ban on crypto salesAccording to an Asahi Shimbun report cited by Yonhap News, the FSA is set to prepare a draft framework that would bar banks and insurance companies from selling crypto directly, while permitting sales through brokerage firms. The draft was said to be slated for submission to the regular Diet session next year. In order to preserve a level competitive field, the authority plans to allow securities arms of banks and insurers to distribute tokens, given that online brokerages already offer crypto exposure. The same report suggested that banks and insurers could be allowed to hold and manage crypto assets once adequate risk management systems were in place. Market developments have continued alongside the policy work. Reuters reported that a yen-pegged stablecoin called JPYC launched on Oct. 27, issued by a company of the same name and backed by domestic savings and Japanese government bonds. An earlier Nikkei article had signaled that regulatory approval was expected, leaving timing as the main open question until the debut. Economic stimulus at odds with rate hike talkBroader macroeconomic policy has also been in focus for crypto investors. Some analysts have argued that an economic stimulus package announced by Japan’s newly elected Prime Minister Sanae Takaichi could channel fresh capital into markets and, by extension, provide a tailwind for Bitcoin. On social media platform X, BitMEX co-founder Arthur Hayes suggested that additional government support for households and businesses might propel the largest cryptocurrency toward the $1 million mark. Monetary policy remains a counterweight. The Bank of Japan kept its benchmark rate at 0.5% on Oct. 30, which led to a weaker yen and boosted demand for government bonds. According to Reuters, Governor Kazuo Ueda indicated that wage trends would guide the next step, leaving open the possibility of a rate increase as early as December. Higher interest rates typically raise borrowing costs and can damp risk appetite, dynamics that often weigh on speculative assets such as cryptocurrencies. Investors are watching how Japan’s evolving rulebook, fiscal support, and cautious monetary tightening intersect—and how that mix ultimately shapes crypto participation and pricing in one of Asia’s most closely observed markets. 

Japan’s financial authority has decided to regulate cryptocurrencies under the Financial Instruments and Exchange Act, classifying them as financial instruments. According to a report by The Asahi Shimbun, the Financial Services Agency (FSA) intends to include this reclassification in an amendment scheduled for submission during next year’s regular Diet session. Under the revised framework, local crypto exchanges will be required to provide detailed disclosures on the 105 tokens they handle. This includes the existence of issuers, underlying technologies such as blockchain, and price volatility risks. The proposed regulations will also subject these classified cryptocurrencies to insider trading rules. Issuers and individuals affiliated with exchanges will be prohibited from trading based on material non-public information, such as the suspension of trading or an issuer’s potential bankruptcy.Photo by Karola G on PexelsToken coverage in JapanAlthough the regulatory list contains 105 tokens, data from the Japan Virtual and Crypto Assets Exchange Association (JVCEA), cited in a New Economy report, indicates that Japanese exchanges currently list 119 cryptocurrencies, leaving unclear how the remaining digital assets will be regulated.  To enhance investor protection, the FSA will mandate specific disclosure requirements for issuers that use token launches for fundraising. These entities will be required to report on their latest business activities and future issuance plans annually. This legislative push follows a discussion paper published by the FSA in April, which proposed dividing crypto assets into two distinct categories. The first category includes tokens issued for raising capital, while the second comprises established cryptocurrencies that are not primarily used for issuer fundraising, citing Bitcoin (BTC) and Ethereum (ETH) as primary examples. Tax cut from 55% to 20%In parallel with these regulatory changes, the FSA plans to request tax reforms similar to those applied to traditional stock trading. Under Japan’s current tax code, taxes on cryptocurrency gains can reach as high as 55%. The agency proposes reducing this rate to a flat 20% in next year’s tax reform. Responding to the news on X, Changpeng Zhao, the founder and former CEO of Binance, welcomed Japan’s initiative to lower crypto taxes. However, he noted that the proposed 20% rate remains high compared to other jurisdictions, many of which do not levy capital gains taxes on crypto at all. Crypto ETF CFDs set to closeThe government’s move to tighten regulations is already reshaping the financial product landscape. One immediate impact is visible in contracts for difference (CFDs) linked to crypto ETFs. As reported by FinanceFeeds, IG Securities, the Japanese subsidiary of the London-listed IG Group, announced changes to its offerings. The firm will stop accepting new orders for CFDs tied to BlackRock’s iShares Bitcoin Trust and its Ethereum equivalent on Dec. 1. Open positions are scheduled to be automatically closed on Jan. 31 of next year. If clients do not settle their holdings prior to this date, the final settlement will be calculated based on the official closing price of that final day. This discontinuation adheres to an FSA decision that derivatives referencing Bitcoin or Ether ETFs must be regulated as crypto-related derivatives rather than standard ETF products. These instruments, now under the crypto-related derivative classification, fall under stricter rules regarding investor protection, operational oversight, and licensing. Japan’s latest regulatory and tax initiatives reflect a broader effort to bring clarity and investor protection to the country’s growing crypto market. As the framework evolves, the industry will be watching how the new rules influence participation and market structure. With lower taxes and stricter oversight on the horizon, both investors and exchanges may need to adjust, potentially reshaping liquidity and Japan’s overall appeal while prompting trading platforms to rethink their product offerings. 

In a widening crackdown on overseas crypto exchanges operating illegally in India, the Financial Intelligence Unit (FIU) has issued “compliance show-cause” notices to some of the leading global crypto platforms. In a statement published by the FIU on Thursday, the agency outlined that it has issued compliance show-cause notices to nine offshore virtual digital assets service providers. These include Bitfinex, Bittrex, Binance, Bitstamp, Gate.io, Huobi, Kraken, Kucoin and MEXC Global.Photo by Naveed Ahmed on UnsplashRequest to block URLsThe FIU has also called on the information ministry to block the URLs of these entities, citing their non-compliance with Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) frameworks. The FIU is a national agency tasked with receiving, analyzing and disseminating information to enforcement agencies where suspect financial transactions are concerned. The move comes as part of India’s broader efforts to tighten oversight of the digital asset sector. Earlier this year, the government imposed money-laundering provisions on the crypto industry, aligning its regulations with those of other nations. In 2022, local crypto exchanges were dealt a significant blow with the introduction of a transaction tax, leading to a sharp decline in trading volumes. Unregistered platformsAccording to the FIU statement, offshore entities, despite serving a substantial number of Indian users, were operating without proper registration under AML and CFT frameworks. To address this, the FIU issued show-cause notices — a formal request for entities to demonstrate compliance with Indian laws when suspected of misconduct. It emerged earlier this month that in excess of 28 crypto platforms had registered with the FIU. Those compliant platforms were largely native Indian businesses. If the FIU’s recommendation is followed and in due course, URL access to the cited overseas exchanges is blocked, this could potentially be a boon for complaint platforms like WazirX, CoinDCX and ZebPay, at least in the short term. India’s actions against Binance, in particular, are not new. In 2021, the country’s anti-money laundering agency was reportedly investigating Binance’s potential involvement in a case related to betting apps. Binance, the world’s largest crypto exchange, has faced increasing regulatory pressure globally. In November, the company agreed to a $4.3 billion settlement, pleading guilty to anti-money laundering and U.S. sanction violations. As part of the settlement, CEO Changpeng Zhao agreed to step down. Community reactionNews of this development has caused some disquiet among Indian crypto advocates. However, taking to social media, Web3 marketer Abhinav Kumar wrote: “This isn’t a sign that crypto trading is suddenly going to be banned. . . . It’s a routine thing. The government wants to make sure foreign companies play by the same rules as Indian ones. That’s fair enough! Also remember India has over 20 million crypto investors now.” Leading crypto adoptionDespite regulatory challenges, India has emerged as a significant player in the global crypto market. Chainalysis’ 2022 global crypto adoption index ranked India as the top country by raw estimated transaction volume, second only to the United States. Responding to the growing crypto adoption, India is actively working on a regulatory framework based on joint recommendations from the International Monetary Fund and the Financial Stability Board. The government’s actions underscore its commitment to ensuring compliance within the crypto sector and aligning with international standards.