Japan’s FSA regulator has begun discussions on introducing stricter rules for cryptocurrencies to better protect Japanese investors.
Back in July, a special department was created, as well as a group of financial experts to help the government of the country of the rising sun to control digital assets. Jiji Press said the agency will also be responsible for tracking cryptocurrency development and central bank digital currency (CBDC) initiatives. It is difficult to say about what kind of development in the structure of strict control we are talking about, but after all, flowers grow through the stones, right?
The new rules are planned for mid-2022. Since their introduction, the FSA hopes to ensure stability in the crypto market without compromising development and innovation in the ecosystem.
In 2019, by the way, a similar law was already introduced, which actually obliged Japan’s crypto exchanges to introduce new functions to protect the user’s assets. This decision was due to the hacking of Bitpoint, a Japanese cryptocurrency exchange that lost $ 32 million. Apparently, today’s announcement was influenced by the hacking of the Liquid network, but the agency was quick to assure that the fact is that, we quote: “Operators in the country have not yet implemented sufficient measures to combat money laundering and price volatility.”
Actually, the initiative looks quite logical – earlier this month the FSA announced that by 2022 it will adopt the FATF Travel Rules, which will require all service providers working with cryptocurrencies to exchange transaction data. The rule was introduced in 2019 as a preventive measure against money laundering and terrorist financing using cryptocurrency.
It is reported that the reaction of the crypto community to the tightening of laws was disapproving, but restrained, since the adoption of such measures is quite expected. And yet, we hope that increased control will not stop the development process.