Self Regulation For Crypto Industry Approved By Japan
The financial regulators in Japan, Financial Services Agency has given its approval for the countries digital currency industry to regulate itself. The official announcement was made on the Japan Virtual Currency Exchange Dealers Association website on Wednesday. The FSA approval gives the association rights to set rules to safeguard investor assets, prevent money laundering and give operational regulations.
The announcement said it had received a certification as an accredited fund's settlements corporation from the FSA. he explained that its self-regulatory powers will come into effect from Wednesday this week.
In the announcement it said:
"We have received certification from the Financial Services Agency as a settlement company association... In addition, we will report that we have enforced self-regulation rules on the same date and officially launched all work including self-regulatory work at the following offices."
The financial agency will, under approval, have the power to penalise operators which donât follow the safety guidelines laid out by the Japanese lawmakers. After the approval, the agency said that they would make more effort to make the industry more trustworthy for their clients.
They went onto say:
âItâs a very fast-moving industry. Itâs better for experts to make rules in a timely manner than bureaucrats do.â
A senior partner at an independent Tokyo law firm Atsumi and Sakai, Yuri Suzuki spoke to the agency about regulations which applied by the firm were harsher compared to the currencies guidelines. Suzuki hoped that the approval would help gain back the trust of the public for the cryptocurrency.
Suzuki said that "the self-regulatory bodyâs workload is likely to be heavy and there is an issue of whether it can secure enough staff with expertise in crypto exchange business.â
Last year, Japan became the first country to regulate digital currency trading platforms. According to the guidelines, all exchanges must first register with the FSA but after the series of hacking attacks on the crypto exchanges, the agency hasnât approached any license related to crypto since December last year.
According to the IBTimes:
âThe high-profile hacks prompted the FSA to put in place rules that would safeguard investors' funds and sanction defaulting exchange platforms. In September, the FSA published guidelines for new applicants willing to establish virtual currency exchanges in the country.â
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