A series of high-profile hacks have seen Japanese regulators ask crypto exchanges to implement strict measures meant to curb illegal activities as well as protect customers
Japan’s Financial Services Agency (FSA) is eyeing stricter regulations related to cryptocurrencies, a local news outlet has reported.
The FSA is said to have initiated broader deliberations on the topic as it seeks to protect Japanese investors.
As highlighted by the local media outlet, the FSA-established group consists of experts whose primary goal is to come up with oversight for the cryptocurrency and decentralised finance (DeFi) space in the country.
In addition, Japan’s regulator is also keen on keeping tabs on the central bank digital currency (CBDC) project, even as the broader crypto sector sees significant developments. Concerns that exchanges have not fully implemented measures meant to curb price manipulation and money laundering are also the reason behind the new push.
According to the report, the FSA expects to have new policies in operation by mid-2022.
Japan was among the first countries to recognise cryptocurrencies in their financial system, helping to catalyse the 2017 bull market. However, the country has recently sought to adopt a stricter stance on crypto, especially on cryptocurrency exchanges in the aftermath of a massive hack on Coincheck in January 2018.
The security breach, and the resultant loss of over $500 million worth of digital assets, saw the FSA toughen up against cryptocurrency exchanges as it sought better user protection.
In 2019, the regulator introduced new rules that demanded crypto exchanges be registered and to ensure they implement measures that put customer safety first. While the market regulator now looks to augment those efforts, recent setbacks such as that seen with the hack at Liquid exchange means a tougher stance from the watchdog is likely.
The Japan Times notes that about 31 platforms, including one of the largest in the world, namely Coinbase, have registered to provide crypto trading activities in the country. This week, major US crypto exchange Coinbase officially entered the Japanese market, partnering financial giant Mitsubishi UFJ Financial Group (MUFG) to allow customers to easily buy and hold cryptocurrencies.
A collection of high-profile hacks have seen Japanese regulators ask crypto exchanges to implement strict measures meant to curb unlawful actions in addition to defend clients
Japan’s Monetary Providers Company (FSA) is eyeing stricter rules associated to cryptocurrencies, an area information outlet has reported.
The FSA is claimed to have initiated broader deliberations on the subject because it seeks to guard Japanese buyers.
As highlighted by the native media outlet, the FSA-established group consists of consultants whose main objective is to provide you with oversight for the cryptocurrency and decentralised finance (DeFi) area within the nation.
As well as, Japan’s regulator can also be eager on protecting tabs on the central financial institution digital forex (CBDC) mission, even because the broader crypto sector sees important developments. Considerations that exchanges haven’t absolutely carried out measures meant to curb value manipulation and cash laundering are additionally the explanation behind the brand new push.
In line with the report, the FSA expects to have new insurance policies in operation by mid-2022.
Japan was among the many first international locations to recognise cryptocurrencies of their monetary system, serving to to catalyse the 2017 bull market. Nonetheless, the nation has lately sought to undertake a stricter stance on crypto, particularly on cryptocurrency exchanges within the aftermath of an enormous hack on Coincheck in January 2018.
The safety breach, and the resultant lack of over $500 million price of digital belongings, noticed the FSA toughen up towards cryptocurrency exchanges because it sought higher person safety.
In 2019, the regulator launched new guidelines that demanded crypto exchanges be registered and to make sure they implement measures that put buyer security first. Whereas the market regulator now appears to enhance these efforts, latest setbacks comparable to that seen with the hack at Liquid trade means a harder stance from the watchdog is probably going.
The Japan Occasions notes that about 31 platforms, together with one of many largest on this planet, particularly Coinbase, have registered to offer crypto buying and selling actions within the nation. This week, main US crypto trade Coinbase formally entered the Japanese market, partnering monetary big Mitsubishi UFJ Monetary Group (MUFG) to permit clients to simply purchase and maintain cryptocurrencies.
