Japan Proposes Dark Pattern Regulation, Excluding Crypto Assets

The Consumer Affairs Agency in Japan has published an interim proposal for regulating 'dark patterns', website and app interface designs that can steer consumers into unintended contracts or away from cancellations.

The agency aims to submit legislation to next year's ordinary Diet session, focusing on general internet transactions such as e-commerce. However, according to Yamamoto of the Transaction Policy Division, crypto asset exchange service providers are unlikely to be directly regulated by the agency.

Crypto asset transactions fall under the Financial Instruments and Exchange Act (FIEA) and the Payment Services Act, making dual regulation structurally unlikely. Yamamoto stated, 'If a framework outside the Specified Commercial Transactions Act were adopted, there could be implications for the FIEA and other laws.'

The agency's moves on dark pattern regulation are not expected to lead to direct regulatory tightening on the crypto asset industry in the short term.