Japan is using its influence as a member of the International Financial Stability Board (IFSB) to promote worldwide crypto currency sector regulation.
According to a report (1), Japanese financial officials have called on their peers worldwide to impose stricter controls on crypto currencies. Mamoru Yanase who works as the Deputy Director-General of the Strategy Development and Management Bureau of the Financial Services Agency (FSA), suggested the idea while talking about FTX Japan.
You may remember that the Delaware bankruptcy court overseeing the FTX bankruptcy case reached an agreement last week to sell FTX Japan plus 3 other businesses. As a result of this, 41 different corporations, including Monex, expressed interest in purchasing the asset. Oki Matsumoto, the CEO of Monex, feels that the acquisition of FTX Japan will lessen the competition from the rival market.
Yanase pointed out that the assets belonging to the FTX subsidiary have been split off from the rest of FTX. According to him, the Japanese regulatory body is maintaining open lines of communication with FTX Japan, and the company plans to begin processing withdrawals in February.
How stricter crypto regulations will likely be implemented?
Yanase observed that the issue was not with crypto currencies in and of themselves but rather with how they had been governed up to this point.
This viewpoint is in sharp contrast to the one held by some of his US peers, who believe that crypto is the source of the issue.
Instead, Yanase emphasized the importance of regulating and supervising crypto organizations like traditional financial institutions are regulated and supervised.
Yanase pleaded with authorities in the United States and Europe to apply the same standards to crypto currency institutions as they do to banks and brokerages.
He claimed that governments need to enact consumer protection regulations for crypto currency exchanges and that these laws should be implemented internationally.
On the other hand, he said that audits, disclosure, transparency, internal controls, and the prevention of money laundering ought to be adopted for crypto currency brokerages.
The Deputy Director General shares that discussions regarding global rules center on the unification of national regulations, and the German monitoring organization for the securities market issued a similar appeal.
According to Yanase's argument, it is possible that a global resolution mechanism will be required to coordinate efforts in the event that significant crypto currency enterprises collapse.
Current State of Crypto Regulation in Japan
Meanwhile, Japan is putting its influence as a member of the International Financial Stability Board (IFSB) to use to advocate for worldwide rules of the crypto currency business.
Even though there have been requests for more stringent rules, Japan is generally considered to be a crypto-friendly climate. It has a limited number of regulations governing crypto currencies. Recent news also includes the announcement that Japan intends to lift its prohibition on the use of stablecoins issued in other countries.
In any event, more crypto laws will only boost the crypto currency industry's growth, and Additionally, it may increase investor confidence in a typically volatile market.