Japan FSA Wants Cryptocurrency Industry to Grow Under ‘Appropriate Regulation’
Japan has taken an interesting stance toward cryptocurrency. In a private discussion with Reuters, Toshihide Endo stated that though the country’s cryptocurrency exchanges are strictly managed, there is no indication of new restrictions. In his own words, “We have no intention to curb (the crypto industry) excessively” and “We would like to see it grow under appropriate regulation.”
Japan was one of the first countries to adopt formal regulatory measures, which has led to Coincheck losing over a billion dollars due to hacking last year. Since, the FSA monitored exchanges in Japan closely and has issued immediate improvement orders.
Further, the country has started a licensing scheme and the FSA is rumored to be reopening applications post-Coincheck upheaval. Unlike previous applicants seeking licensing, new ones may encounter stronger vetting procedures. Local news outlet Nikkei reported, “It will be a policy to conduct further rigorous examination, such as confirming the effectiveness of the business plan and the internal management system on site with the registration applicant.”
Endo provided in his commentary to Reuters,
“They should not just sit and wait for the BOJ to change its policy. Will everything be alight if it seems exit and normalizes interest rates? I don’t think so.”