Newer Developments in the Japanese Cryptocurrency MarketSeptember 9, 2019
Crypto-related businesses are licensed in Japan by the Financial Services Agency (FSA). Japan, the leading market in cryptocurrency, has newer developments concerning the blockchain and cryptocurrency markets.
Taro Aso, Deputy Prime Minister of Japan, stated that regulators should come up with newer approaches to deal with emerging technologies like the blockchain and cryptocurrencies.
Aso was the keynote speaker in the FINSUM fintech conference which was held in Tokyo on September 05, 2019. Regulations are to be adopted to keep up with emerging new technologies.
The financial authorities are to respond to newer developments to prevent getting left behind. He further stated, “New approaches are important without relying on conventional frameworks and approaches.”
Yoshitaka Kitao, CEO of Japanese Financial Services, when speaking at the FINSUM conference stated that he hopes to get regulatory approval for a new self-regulatory body during the next year. The new organization is focusing on creating standards and practices appropriate for security token offerings.
The group will file a self-regulation proposal by the end of 2019, and it will eventually aim for its certification in April 2020.
Ripple is currently planning to invest $50 million in MoneyGram, payments service to provide for a meaningful SBI business.
LINE, which is a subsidiary of the Japanese messaging service, LVC has obtained a license to operate as a cryptocurrency exchange to function as a cryptocurrency exchange from the FSA. This exchange will purportedly support cryptocurrencies like Bitcoin (BTC), Ether (ETH), XRP, Litecoin (LTC) and Bitcoin Cash (BCH). LINE previously launched its Bitbox exchange in Singapore during 2018; however, as it did not have the required licenses, it was not able to provide its services in Japan and the United States.
Yuriko Koike, Governor of Tokyo prefecture, recently declared that the city is geared to start a proof-of-concept (POC) for its municipal digital currency which will be issued by March of 2020. The PoC will happen in two locations in the city and will include the awarding of the digital currency to the residents who have made social contributions in environmental conservation eventually eradicating poverty. The name for the currency is not yet declared.
In a recent activity report from FSA, the Fintech Innovation Hub has recently released an activity report in which the regulator stated that the Bitcoin’s Lightening Network is developing at a faster pace. The network speeds up the transactions on the two-layer protocol, which is considered to be the solution for the Bitcoin Network’s Scalability problem.