Japan’s newly appointed Financial Services Agency Commissioner Junichi
Nakajima believes Bitcoin is a quick way to transfer cash, but people
use BTC for speculation and investment.
The new commissioner of Japan’s Financial Services Agency
(FSA), Junichi Nakajima, believes the country needs to think carefully
before making Bitcoin (BTC) and other cryptocurrencies more accessible to the general public.
Nakajima
believes crypto assets like Bitcoin have the potential to benefit the
public as a quick and cheap way to transfer money, he said in an interview with Bloomberg. However, most of the crypto assets are currently used for speculation and investment instead.
That’s
why the Japanese regulator believes careful consideration is required
before making it easier for the general public to invest in crypto
assets. Nakajima said that the high volatility of crypto markets due to
not having underlying assets is a primary reason for the Japanese
regulator not allowing crypto investment trusts.
Japan is known
for ramping up its regulatory efforts following the infamous hack attack
on Tokyo-based crypto exchange Coincheck, which resulted in th loss of 523 million NEM coins, worth approximately $534 million.
Since
then, the country became a difficult market in which to do business for
the registered crypto exchanges, Nakajima admits. The current
regulatory framework on crypto exchanges effectively protects customers
and meets the Anti-Money Laundering requirements. But the business
situation of most of the registered crypto exchanges “is rather rough,”
Nakajima added.
Related: US–Japan digital trade deal should include crypto: American think tank
The Japanese government is aiming for global cooperation to regulate digital currencies.
To this end, the Japanese Ministry of Finance is reportedly seeking to
increase its staff. The FSA also established a new unit last month to
monitor broader crypto markets and focus on decentralized finance.
Major
crypto exchanges like Binance and Bybit are not among Japan's 31
registered crypto exchanges. The FSA issued a formal warning letter to Bybit in May and Binance in June, accusing them of offering crypto exchange services in the country without registration.
source link : https://cointelegraph.com/news/operating-a-crypto-exchange-in-japan-is-rather-tough-fsa-chief-admits
