Financial regulators in Japan have strictly advocated for more crypto regulations to prevent more fraud from occurring in the industry.
Regulatory authorities for financial institutions in Japan have put forward the need for global regulators to regulate crypto similarly to traditional banks. This strengthens the fact that Japan wants the crypto space to be regulated more stringently. In an interview with a leading financial daily, a senior official in Japan reaffirmed that crypto had become big enough to be regulated like traditional financial institutions.
“If you like to implement effective regulation, you have to do the same as you regulate and supervise traditional institutions,” said Mamoru Yanase, the Financial Services Agency’s Strategy Development and Management Bureau’s deputy director-general. He was also referring to the collapse of a major crypto exchange in the United States, which had shaken the entire financial world.
Yanase believed that the bankruptcy wasn’t due to crypto but because of the lack of regulation and supervision and loose internal controls and governance. The recommendations for the regulation of crypto have been proposed by the Financial Stability Board, which is responsible for the regulation of the crypto industry.
Requests were also made for all aspects of the protection of consumers in the crypto space, including prevention of money laundering, internal controls, strong governance, and disclosure and auditing for crypto exchanges. The Japanese arm of the bankrupt exchange is set to resume withdrawals in February, while it has also garnered a lot of interest from several parties for its sale.