Big things are happening in the crypto space in Japan. According to the latest news, the financial regulator of Japan is considering a shakeup of its existing framework of regulating cryptocurrency exchanges all in order to bolster customer protection norms and improve the secure investor assets.
In April 2017, the Financial Services Agency (FSA) of Japan enacted legislation that recognized Bitcoin as a legal method of payment, after a revision of the country’s Payment Services Act. At the same time, this regulation also mandated cryptocurrency exchange operators with a domestic presence to register with the FSA and earn a license from the regulator.
A year later, the same regulator is considering a pivot in its foundation of crypto exchange regulation. After they determined that the current customer protection mechanisms are insufficient (according to a report by the local publication Sankei), the FSA is looking at bringing the crypto exchange sector under guidance and view of the Financial Instruments and Exchange Act (FIEA). This will result in laws that are applicable to traditional securities firms and stock brokerages.
Japan’s crypto future seems questionable right now, especially after the major $530 million theft of NEM tokens from the Tokyo-based exchange Coincheck. At the same time, however, this is the reason why the authorities want a change in regulation.
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