Japan has just reaffirmed its position on cryptos saying that they have no plans to stop cryptocurrencies. In his statement, Financial Services Agency (FSA) commissioner, Toshido Endo, said : “We have no intention to curb (the crypto industry) excessively,”
In an interview by Reuters, the commissioner said that his agency was trying to encourage technological innovations while making sure that their consumers are protected. The FSA would also want to see that the crypto industry flourish with appropriate policies.
The FSA scrutinized cryptocurrency platforms following the $530 million cryptocurrency heist from Coincheck. The agency also hinted in July that it was considering regulating cryptocurrency exchanges under the scope of Financial Instruments and Exchange Act (FIEA). Currently, cryptocurrencies are under the Payments Services Act, and once the new policy takes effect, what used to be considered as electronic money will then be as a financial product
The rising popularity of blockchain technology and cryptocurrencies has swept across the world and kept government struggling to come up with the policies regarding these new asset class.
Amid the ban implemented by some countries on cryptos, Japan recognize blockchain’s potential to disrupt industries. As of this time, there are 16 licensed crypto exchanges in Japan and and are members of Japan Virtual Currency Exchange Association (JVCEA). The body is applying with FSA to be a self-regulatory body on crypto exchange.
The JVCEA recently proposed a limit on the amount investors could borrow on margin trading. There were other proposals by the body for a more stringent policies on crypto exchanges in a move to strengthen consumer protection.
A proposal on ICO guidelines was also proposed by a study group in Japan which includes rules ensuring compliance with KYC, tracing of project progress and fraud protection and manipulation to protect consumers.
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