- 1 Japan is proving to be a very interesting region when it comes to cryptocurrency regulation. Despite clamping down on firms violating existing financial rules hard, the government has remained surprisingly open-minded about this new form of money.
- 2 Japan’s FSA Remains Positive
- 3 In Japan, cryptocurrencies such as Bitcoin have long since obtained the status of ‘legal tender’. Today, the Asian powerhouse boasts of a booming cryptocurrency ecosystem, wherein dozens of stores are readily accepting altcoin payments. Online transactions via crypto are also on the rise, which further shows that the digital asset ecosystem is continuously growing within the nation.
- 4 However, despite the impressive growth of this economic space, there are still many concerns to take into account. For starters. the FSA has made it clear it will not tolerate companies operating without a license. Nor will it stand by any company being hacked due to its own mistakes or laxities. In this regard, the Coincheck incident that took earlier this year serves as a warning sign for other companies to step up their game.
- 5 So far, the FSA has discovered numerous cases of “sloppy’ management, as well as a lack of basic internal control to prevent money laundering and hacks. This is why some domestic trading platforms were temporarily forced to suspend their services– at least until they got their act together.
- 6 Final Thoughts
- 7 While not everyone seems to be in favor of the harsh actions taken by the FSA, from the outside looking in, the agency does appear to have the best interests of its investors in mind.