Financial Services Agency plans to change Japanese Cryptocurrency RegulationsJuly 6, 2018
On July 3, it was reported on a Japanese new media that the Financial Services Agency is planning to modify the regulation of the country’s cryptocurrency regulations. This move taken by the FSA would require the crypto exchanges to manage their institutional and private holdings as stipulated by the Financial Instruments and Exchange Act (FIEA).
The FIEA also obliges all the companies to manage all their securities and funds, such as corporate assets and stocks. As reported by the Sankei, the modification in the regulations of the cryptocurrency will put most of the exchanges in a position to better offer better customer protections. A series of attacks and thefts concerned most of the Japanese crypto enthusiast this year. At present, the cryptocurrencies are legally considered the same as the electronic money. However, the FSA move to change the regulatory basis will then be treated as a financial product.
Japan has been struggling in creating a balance regulation of the country’s cryptocurrency industry and promoting the freedom to generate and let the industry to grow. After the incident of the hack with the Coincheck, the FSA has decided to launch investigations. The agency then found out numerous problems with the crypto exchange both with the pending and registered. The said investigation then resulted in the suspension of other exchanges in the country and warnings to other to reassess their security procedures.
The Japan Virtual Currency Association, a voluntary organization, has also suggested the FSA keep all the exchanges in line with the asset market and to secure a mandatory storage protocol. After two years of acting as the FSA head, Nobuchika Mori plans to step down and name his successor as the new agency head. The new successor of the agency will then continue the change in the regulatory basis for the cryptocurrencies.
Mori took place as the head of the agency during the tempestuous moment two years ago. He took the position with a strong plan of supporting the financial technology growth in the country. This goal of Mori is a way to rescue the country’s faltering economy. Nobucika Mori is also expected to pick his successor in the coming weeks.
The possible change in the country’s cryptocurrency regulations will also depend on the next head of the agency and the suggestions offered by the JVCEA. A regulating body made last March has been working in keeping the goal of the FSA in bringing the exchanges in line with the FSA’s requirements for the security and KYC rules.