The Japanese House of Councillors passed a bill: easing the entry threshold for encryption intermediaries and adding asset retention clauses to prevent outflow risks.

According to reports, the Japanese Senate passed an amendment to the “Settlement of Funds Act” on June 6, establishing a new system for “encryption asset intermediary services,” allowing companies to engage in matching services without the need to register as encryption asset exchange operators, aiming to drop market entry barriers and promote innovation in encryption finance.

The amendment also introduces the “Domestic Retention Order” clause, which grants the government the power to order platforms to retain part of users’ assets within Japan when necessary, in order to prevent the risk of asset outflow similar to that caused by the bankruptcy of a certain trading platform. The new law is expected to officially take effect within one year from the date of announcement.