Digital currency exchanges are now regulated in Japan.

This was after the Japanese Diet enacted a bill on Wednesday that mandates the government’s Financial Services Agency (FSA) to regulate virtual currency exchanges and their operators in the country, a Japan Times report revealed.

Under the revised law, operators of exchanges dealing in digital currency such as bitcoin are required to register with the FSA. The agency is also given the mandate to conduct on-site inspections and require operators to follow know-your-customer (KYC) practices.

The new law now defines virtual currencies like bitcoin as “asset-like values,” allowing digital money to be used not only to buy goods and services but also as an alternative for legal tender through purchases and trades.