Law No. 194/2020 – What It Means for Crypto Users

When navigating Law No. 194/2020, the primary legal framework governing cryptocurrency activities in the jurisdiction. Also known as Crypto Regulation Act 2020, it sets the rules for token issuance, exchange operations, and tax reporting. This law aims to protect investors while giving clear guidelines for businesses. Understanding its scope is the first step to staying on the right side of regulators.

At the heart of the act lies cryptocurrency regulation, the set of rules that dictate how digital assets can be created, traded, and reported. The regulation mandates that every platform handling crypto must implement KYC compliance, procedures to verify the identity of users and prevent money‑laundering. By linking user identities to transactions, the law reduces fraud risk and satisfies anti‑money‑laundering (AML) standards. In practice, this means any exchange or DeFi service you use will ask for passport scans, proof of address, or similar documentation before you can move tokens.

Beyond on‑shore requirements, FBAR reporting, the mandatory filing for foreign financial accounts held by U.S. persons becomes relevant for anyone holding crypto on overseas exchanges. The law mirrors global trends by imposing hefty penalties—up to $100,000 for willful violations—if you ignore these filings. A practical way to stay compliant is to maintain a spreadsheet of all foreign wallets, track their balances in USD, and file the FBAR before the April deadline each year. Ignoring this step can trigger audits and frozen assets, a risk no trader wants.

Internationally, Japan's Financial Services Agency, the regulator overseeing crypto compliance in Japan has set a high bar for security and consumer protection. While Law No. 194/2020 applies locally, many platforms operate across borders, so they often adopt Japan FSA standards to meet the strictest requirements. This creates a de‑facto global baseline, meaning your local compliance steps also align with overseas best practices. By following the FSA’s guidelines on token classification and licensing, you avoid surprises when moving assets between jurisdictions.

Understanding Law No. 194/2020 helps you navigate the complex web of rules that affect every crypto transaction. Below, you’ll find detailed articles that break down each piece of the puzzle—from how to complete KYC on popular exchanges, to step‑by‑step FBAR filing guides, and insights on how Japan’s regulator shapes global compliance. Dive in to see practical tips, real‑world examples, and the latest updates that keep you ahead of the curve.