Glossary

Crypto assets

Crypto assets is the term used to refer to crypto currencies, utility token and security tokens, among other assets. They are used as payment for the purchase of goods and services among a large number of unspecified persons and companies over the Internet. Crypto assets can also be exchanged for legal tender such as Yen, Dollar, Euro, or Won through specialized exchanges.

The term “virtual currency” become commonly used in Japan due to the Payment Services Act translating the phrasing used by the Financial Action Task Force (FATF) in 2017.

Since November 2018, international conferences such as the G20 Summit have been increasingly using the term “crypto assets”. However, there is concern that the term “virtual currency” may be misunderstood as fiat currencies. Due to this, it has been proposed that the phrasing used in the Payment Services Act be changed from “virtual currency” to “crypto assets”.

Should the change go through, only the name of the term is expected to change. The actual definition should be the same as the one used for virtual currency.