Japan Demands Stricter Regulation of Cryptocurrencies
2023.01.17 07:44
Japan Demands Stricter Regulation of Cryptocurrencies
By Kristina Sobol
Budrigannews.com – Japan’s financial regulators have called for stricter regulations for the sector and have urged global regulators to treat cryptocurrency in the same way they treat banking.
Mamoru Yanase, deputy director-general of the Strategy Development and Management Bureau of the Financial Services Agency, asserts that crypto must be regulated.
According to a Bloomberg report from January 17, he stated, “If you like to implement effective regulation, you have to do the same as you regulate and supervise traditional institutions.”
Following the collapse of FTX in November, which rattled the industry and sparked the need for urgent regulatory action, Japan’s financial watchdog has made these remarks.
Yanase, in contrast to some of his counterparts in the United States, has acknowledged that the issue was not crypto. According to him, “loose governance, lax internal controls, and the absence of regulation and supervision” were to blame for the most recent scandal. “Crypto technology itself is not the cause of the scandal,” he said.
He stated that authorities in Europe and the United States have been urged to impose the same regulations on cryptocurrency exchanges as they do on banks and brokerage firms.
The Financial Stability Board, a global organization tasked with regulating the digital asset industry, has pushed the recommendations through.
Yanase went on to say that nations “need to firmly demand” crypto exchanges implement consumer protection measures. The prevention of money laundering, robust governance, internal controls, auditing, and disclosure of crypto brokerages were also stipulated.
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The remarks were made while Yanase confirmed that the Japanese FTX subsidiary is anticipated to resume withdrawals in February.
Yanase said, “We have been in close communication with FTX Japan,” and he said that the subsidiary’s “client’s assets have been properly segregated.”
The sale of FTX Japan and other company subsidiaries was approved by the U.S. court that was in charge of the FTX case. Cointelegraph reported last week that 41 parties were interested in purchasing the Japanese exchange.
