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Nikkei Asia
22-07-2025
- Business
- Nikkei Asia
Ex-SMBC Nikko deputy president convicted over market manipulation
Crime Four other former employees of Japanese brokerage also convicted According to the indictment, SMBC Nikko placed large buy orders to stabilize the prices of 10 stocks. All five former employees pleaded not guilty in the case. © Reuters TOKYO (Kyodo) -- A Japanese district court on Tuesday convicted a former deputy president of SMBC Nikko Securities over his role in market manipulation involving the illegal purchase of shares to stabilize stock prices. Toshihiro Sato, 63, was sentenced by the Tokyo District Court to two years and six months in prison, suspended for five years, for violating the Financial Instruments and Exchange Act while working for the major Japanese brokerage. Four other former employees were also convicted on the same charge. All five had pleaded not guilty. According to the indictment, between December 2019 and April 2021, SMBC Nikko placed large buy orders to stabilize the prices of 10 stocks. The trades were part of "block offering" transactions, in which the firm purchased significant volumes of shares from major shareholders outside normal trading hours and resold them to investors. Trials for SMBC Nikko as a corporation, which admitted to the charge, and for another former executive were held separately. The court handed down guilty verdicts in 2023, and those rulings have since been finalized.
Tokyo Reported
10-07-2025
- Business
- Tokyo Reported
Trio suspected of collecting ¥500 million in FX investments without license
KANAGAWA (TR) – Kanagawa Prefectural Police have arrested three persons for allegedly running an unlicensed investment business that is believed to have collected nearly 500 million yen from over 30 people, reports the Asahi Shimbun (July 9). On 11 occasions over a one-year period through last August, Kiyofumi Takamori, the 77-year-old CEO of the Sapporo City-based investment company Earth One, his wife, 55-year-old Rika, and Yasunori Tanaka, 49, are suspected of collecting a total of around 70.3 million yen in forex exchange investments without a government-approved license from three customers, including a woman in her 40s from Yokohama City. In soliciting the funds, one of the suspects claimed, 'If you invest, you will receive 10 times that amount in seven years.' The suspects also disguised the investments as being actually advice fees, calling them 'advisory contracts.' In commenting on allegations of violating the Financial Instruments and Exchange Act, Kiyofumi Takamori partially denied the allegations, 'It's true that we conducted transactions without registration, but we did not disguise the contracts.' Meanwhile, Tanaka admits to the allegations. Rika denies involvement. Kiyofumi Takamori, left, his wife Rika, center, and Yasunori Tanaka (X) According to police, no dividends were paid to the three victims. As well, the suspects hardly responded to requests for refunds. Prefectural police believe that Takamori and his associates raised approximately 485 million yen from at least 34 people between September 2021 and October 2024. Prefectural police are currently investigating the flow of money received from customers as the investigation continues.
Arabian Post
10-07-2025
- Business
- Arabian Post
Tokyo Real Estate Set for $75 Million Blockchain Shake‑Up
GATES Inc. is deploying blockchain technology to enable foreign investors to buy stakes in a portfolio of income-generating properties worth US $75 million in central Tokyo through the Oasys network. The initiative is part of a broader strategy to modernise how overseas buyers participate in Japan's real estate market. The pilot scheme will issue digital tokens representing fractional ownership in a basket of premium commercial and residential assets, held via an overseas special-purpose vehicle to ensure regulatory compliance. GATES CEO Yushi Sekino described the move as 'building next‑generation investment infrastructure that allows global investors easy access to Japanese assets.' GATES has signalled an ambitious scaling plan to encompass US $200 billion worth of real estate tokens—a fraction but strategic segment of Japan's entire US $20.5 trillion market. Such a leap reflects growing institutional interest in tokenisation of real‑world assets worldwide, with projections valuing the tokenised bond and equity space at US $18 trillion by 2033. ADVERTISEMENT Blockchain advocates argue this model eliminates traditional intermediaries—brokers, legal firms, language translators—while lowering costs and administrative burdens. GATES will enable the platform to carry out token issuance, secondary trades and compliance checks on-chain. This allows small-scale global investors to transact in real time, without navigating Japanese legal complexities directly. Oasys, a layer‑1 blockchain originally built with gaming in mind, has repositioned itself toward tokenising real‑world assets, including property and intellectual property rights. Ryo Matsubara, Oasys Representative Director, emphasised that 'Japanese content, whether game IP or other cultural assets, commands high global value,' thus reinforcing their pivot to real‑world asset tokenisation. The first phase focuses on Tokyo, but GATES plans roll‑out to other major international markets including the United States, Europe and Southeast Asia. Future stages may target tokenised rights to Japanese media and entertainment franchises, unlocking new investment channels for cultural IP. Global benchmarks suggest tokenised real estate is gaining speed: Dubai anticipates a US $16 billion market by 2033, while international banks and tech firms increasingly pilot similar schemes. CoinDesk highlighted that GATES is the first major Japanese real estate company to attempt a tokenisation project of this magnitude. Yet challenges remain. Japanese regulatory frameworks governing securities—including digital asset classification—are still evolving. Local legal consultation remains essential, especially in structuring overseas vehicles to comply with the Financial Instruments and Exchange Act. Additionally, investor appetite outside Asia and Europe will hinge on clarity in custody, asset valuation methods, and secondary‑market liquidity. Independent analysts note that tokenisation promises more than simplified access; it may improve transparency, tracking and governance by embedding ownership and contract details onto an immutable ledger. Such benefits could, over time, boost asset yields and reduce fraud risk. However, critics caution that regulatory and technological bottlenecks, combined with customary conservatism in Japanese real‑estate investment, could slow adoption. So many see the success of this pilot in Tokyo as crucial evidence for scaling up to the US $200 billion target. With GATES pursuing a Nasdaq listing and reporting revenue of roughly US $145 million in 2024, the company has both resources and strategic backing to drive forward. If Tokyo's pilot succeeds, the combination of blockchain infrastructure and overseas special‑purpose vehicle structures could point the way for similar strategies across Asia and beyond. While tokenisation of Japanese real estate may appear niche, the project could presage a broader redefinition of how global capital flows into property markets—promising greater access, efficiency and digital-native investment models.
Arabian Post
24-06-2025
- Business
- Arabian Post
Japan Poised to Reclassify Crypto and Slash Gains Tax
Japan's Financial Services Agency has unveiled plans to amend the Financial Instruments and Exchange Act, bringing cryptocurrencies under securities‑style regulation and opening the door to Bitcoin spot ETFs. The proposals also aim to replace the current progressive tax on crypto gains—ranging up to 55 per cent—with a uniform 20 per cent levy. The agency's discussion paper, released on 10 April by its digital policy division, outlines regulatory changes including classification of crypto into 'Type 1' and 'Type 2', with insider‑trading rules to follow much like those in equity markets. Behind the latest move is a growing consensus among Japan's mainstream political and financial circles. The governing Liberal Democratic Party has actively backed the 20 per cent tax proposal, offering parity with capital‑gains treatment on stocks and bonds. It has also pushed to align tax on derivatives and crypto‑to‑crypto swaps accordingly. ADVERTISEMENT Parliament is expected to review legislative amendments in early 2026, with the FSA targeting a policy direction announcement by mid‑2025. Analysts note the regulatory upgrade could unlock institutional entry. While crypto ETFs have been launched in the US, Europe and Hong Kong, Japanese regulators have remained notably cautious. Under the proposed amendments, crypto-like instruments would qualify as financial instruments, subject to disclosure, custody, and market‑abuse safeguards. This shift marks a departure from the current regime under the Payment Services Act, where digital assets are categorised alongside payments rather than securities. The FSA's plan would position crypto within a legal framework better suited to large-scale trading activities. Tax treatment has been a central barrier. Gains on crypto are now taxed as 'miscellaneous' income—reaching rates as high as 55 per cent—while ETFs qualify as capital gains taxed around 20 per cent. The new flat rate would remove current inequities and possibly stimulate market growth. Participants in the Japanese financial industry, including SBI and Franklin Templeton, are reportedly making strategic preparations. SBI has already collaborated with both US and UK asset managers to launch crypto‑related products, anticipating that regulatory approval will soon follow. Despite these signals, caution persists. The Ministry of Finance remains cautious, wary of crypto's volatility and adverse events such as the collapse of Mt. Gox and DMM Wallet, which led to extensive losses. The FSA itself is said to proceed methodically, emphasising investor protection above all. To ensure granularity, the FSA's discussion paper recommends dividing tokens into two regulatory categories: Type 1 assets—used in fundraising or business operations—and Type 2 assets, which include decentralised tokens like Bitcoin and Ethereum with no single issuer. This structure supports tailored oversight, including anti‑insider trading provisions. Industry reactions reflect a mix of anticipation and prudence. Proponents argue that clearer classification and tax certainty would attract both retail and institutional investors. They point to the global momentum behind crypto ETFs and the relative tax efficiency such structures bring. Opponents, however, urge regulators to remain vigilant to market manipulation and developing infrastructure risks. Global comparisons place Japan near the frontier of regulatory maturity. Countries such as the United States have delayed crypto classification under securities law even as they approved Bitcoin ETFs. The EU's MiCA and Hong Kong's licensing framework signal increased global regulatory alignment. Japan's proposed amendments would signal competitive parity in Asia‑Pacific markets. As Japan prepares to table the bill in parliament in 2026, attention will centre on implementation details. These include ETF approval timelines, disclosure requirements for exchanges and custodians, and whether the flat‑tax rate will apply retroactively or to future accruals only.
Coin Geek
03-06-2025
- Business
- Coin Geek
Japan's bold move: Reclassification for safer digital economy
Getting your Trinity Audio player ready... Japan's decision to reclassify digital currencies as financial products is a transformative move that has the potential to revolutionize the country's digital finance landscape. By recognizing digital assets as financial products under the Financial Instruments and Exchange Act (FIEA), the Financial Services Agency (FSA) is taking a bold step toward enhancing investor protection, increasing transparency, and fostering a more robust digital asset ecosystem. At the heart of this reclassification is a commitment to investor protection. For too long, the digital asset market has been a Wild West, with bad actors exploiting regulatory gaps to engage in market manipulation, insider trading, and other fraudulent activities. By bringing cryptocurrencies under the FIEA, the FSA aims to ensure that digital assets are subject to the same stringent rules as traditional financial instruments like stocks and bonds. This means greater oversight, stricter disclosure requirements, and tougher penalties for misconduct. One of the most significant benefits of this move is the enhanced regulation of digital currency exchanges. These platforms are the primary gateways through which investors access digital assets, but they have historically been prone to security breaches, mismanagement, and fraud. Japan has experienced this firsthand with high-profile incidents like the Mt. Gox collapse and the Coincheck hack, where investors lost millions due to poor security and oversight. By subjecting exchanges to stricter regulatory standards, the FSA is creating a safer environment for investors. Exchanges will be required to maintain robust security protocols, conduct regular audits, and ensure compliance with know-your-customer (KYC) and anti-money laundering (AML) regulations. This will not only protect investors but also help restore confidence in the market, attracting more institutional participants who were previously wary of the industry's lack of safeguards. Moreover, the reclassification could lead to significant tax reforms that benefit investors. Currently, digital currency gains in Japan are taxed as miscellaneous income, with rates reaching as high as 55%. By recognizing digital assets as financial products, the FSA could pave the way for treating digital asset gains as capital gains, which are subject to a flat tax rate of 20%. This would make digital asset investments more attractive, encouraging broader participation in the market. Another positive aspect of this shift is that it could drive the industry toward greater utility and usability. For too long, the focus of many digital currency projects has been on speculation rather than real-world value. With stricter regulations in place, exchanges and digital asset firms will be encouraged to prioritize security, transparency, and practical use cases over mere hype. This could lead to a new wave of innovation as companies strive to develop blockchain applications that deliver tangible benefits to consumers and businesses. The increased oversight could also help Japan establish itself as a leader in blockchain innovation. As exchanges and other digital asset platforms are forced to adhere to global best practices, they will become more competitive on the international stage. Japanese firms that survive the regulatory shakeout will be those that can demonstrate real-world value, offering services that go beyond simple trading. This could include blockchain solutions for payments, digital identity verification, supply chain tracking, and even decentralized finance (DeFi). Yet, this transformation will not be without challenges. Smaller digital asset firms, which have thrived in a relatively unregulated environment, may struggle to comply with the new rules. Legal fees, licensing requirements, and ongoing reporting obligations will increase their operational costs, potentially driving some startups out of the market. However, this is not necessarily a negative outcome because it signifies market maturation. Just as with traditional finance (TradFi), only the strongest, most reliable firms will thrive under stricter oversight, creating a safer environment for investors. Critics may argue that increased regulation will stifle innovation, but this perspective ignores the reality that sustainable innovation requires a secure and trustworthy foundation. A market-driven purely by speculation is a bubble waiting to burst, but one grounded in transparency, investor protection, and real-world utility is far more resilient. Japan's regulatory shift is an opportunity to transition from the Wild West of crypto speculation to a mature, well-regulated industry that can support long-term growth and adoption. Ultimately, Japan's decision to reclassify cryptocurrencies as financial products is a recognition of the growing importance of digital assets in the global financial system. It is a move that will protect investors, enhance market integrity, and drive the industry toward greater usability and innovation. While the transition may be challenging for some firms, it is a necessary step in the evolution of the digital currency market. By leading the way in regulatory innovation, Japan has the opportunity to become a global hub for blockchain technology and digital finance. Watch: It's time for regulation to enable blockchain growth title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
