Japanese financial regulator, the FSA, is reportedly holding talks and considering stricter regulations for the Crypto asset market in Japan. Reports by local media claim that the regulator is hoping to come up with measures that will stabilize the market and ultimately ensure the safety of investors by next summer.
FSA Discusses New Crypto Rules in Japan
According to Jiji Press, The Financial Services Agency of Japan (FSA), has begun weighing its options and has now opened discussions on the likely introduction of tougher regulations for crypto assets.
The news agency reports that the watchdog wants to be certain that new forms of finance are stable without getting in the way of their development. The measures are expected to be in place as early enough as the summer of next year.
Japanese Financial Regulator To Make Crypto Rules Stricter by 2022
Last month, the agency created a special department that will be overseeing digital and decentralized finance (defi). The regulator also put together a team of experts that will address the issue. These new laws and regulations being contemplated come in direct response to the ever-advancing technological innovations in the financial sphere, including cryptocurrencies and central bank digital currencies (CBDCs).
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According to Japan Times, while reporting on the regulatory debate at the FSA, the local news has remarked that the Bank of Japan (BOJ) has launched a digital currency experiment even though it has no plans to issue one yet at this time. Nevertheless, BOJ, alongside other government institutions, will continue to pay close attention to the risks digital currencies may bring to Japan’s financial markets.
As seen in the news reports, Junichi Nakajima, head of the FSA said earlier this month that he is very open-minded about the benefits that cryptocurrencies stand to potentially create — such as being a quick and cheap option to send cash. However, he was also quick to note that in Japan they are mostly used for speculation and investment rather than money transfers. The commissioner also noted that new challenges were stemming from the growing number of companies in the decentralized finance sector and expatiated further on the need to carefully consider whether or not, to make it easier for the general public to invest in crypto assets.