- within Technology topic(s)
- with Senior Company Executives, HR and Finance and Tax Executives
- in United States
- with readers working within the Basic Industries, Chemicals and Oil & Gas industries
EXECUTIVE SUMMARY
We are pleased to launch a new Joint Letter prepared by Chuo Sogo LPC, together with Fox & Mandal, one of India's oldest full-service law firms, to provide side-by-side, practice-ready insights on topics drawing attention in both jurisdictions. Our aim is to distil fast-moving developments into concise takeaways that support timely, well-rounded decisions by in-house teams and executives.
This inaugural issue surveys the treatment of crypto-related tokens in Japan and India. For ease of reference, we:
- Map how tokens are classified under each regime (for example, crypto assets, Electronic Payment Instruments, security tokens, and NFTs)
- Outline the principal licensing and conduct requirements applicable to issuance, trading/transfer, exchange and custody, as well as marketing and advertising touchpoints
- Summarise key tax considerations
- Highlight recent reforms together with what to watch next.
Even as regulation of crypto assets has evolved at a rapid clip in Japan and moved beyond the initial focus on anti-money laundering, terror financing and user protection concerns, the evolution of such regulations in India has been a bit staid. At present, crypto assets in India lack legal status, classification norms, consumer protection mechanisms, and prudential standards for service providers. The legal structure governing the crypto assets ecosystem has emerged not from a unified legislative vision but from a patchwork of regulatory signals issued by tax authorities, financial-crime regulators and, increasingly, the judiciary, as is evident from the landmark ruling of the Madras High Court in Rhutikumari v. Zanmai Labs Pvt Ltd (OA No. 194 of 2025) which, for the first time, affirmed that crypto currencies constitute property capable of being held in trust – a finding with significant implications for custody, insolvency treatment and investor protection. Even as the need for effective, objective and clear regulations for crypto assets becomes increasingly apparent, India has a long way to go to catch up to the modern crypto assets regulatory frameworks across different jurisdictions.
Please note that this Letter is provided for general informational purposes only and does not constitute legal advice. Specific transactions may turn on facts, sector-specific rules, and ongoing policy shifts in each country. If you are considering a particular product or transaction, we encourage you to contact Chuo Sogo LPC or Fox & Mandal to discuss how the points raised here apply to your circumstances. We look forward to supporting your Japan–India initiatives with clear, comparative analysis in the issues to come.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
