Sunday, February 5, 2023

Japanese Financial Services Agency (FSA) Plans To Strengthen Crypto Rules

The Financial Services Agency (FSA) of Japan is planning to introduce new crypto regulations in the country, by mid-2022, to offer better protection to investors.

In July, the FSA formulated a team of financial experts to help the government supervise digital as well as decentralized finance.

As per Jiji Press, the Japanese financial regulator would also be tracing all kinds of developments in cryptocurrencies and the central bank digital currency (CBDC) initiative.

“With the new regulations in place, the FSA hopes to bring stability to the crypto market while ensuring no damage to the development and innovation within the ecosystem.”

In 2019, the FSA revised the same kind of laws and ordered the crypto exchanges in the country to add new features on their platforms for safeguarding the user’s assets. 

The FSA linked its earlier decision to a hack of Japan-based crypto exchange Bitpoint, in which the trading platform lost $32 million.

Recently, another Japan-based crypto exchange Liquid was compromised, in which it lost over $90 million. Regarding that, the FSA stated that the operators need to implement Anti-Money Laundering laws and price volatility measures in the country.

A few weeks ago, the FSA announced that by 2022 it will impose the FATF’s Travel Rule in the country. After the implementation of this rule, it would be important for the companies dealing in cryptocurrencies to share their transaction data.

The FATF introduce this Travel Rule in 2019 as a preventive measure against money laundering and terrorist financing with cryptocurrencies. 

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