Financial Services Agency (FSA), the regulatory agency of Japan, has geared up to optimize the country’s crypto regulations. The agency is looking to bring in more regulations and improve Japan’s crypto ties with other international authorities.
This is seen as a huge positive development by the crypto community in the country. The regulator is joining forces with JVCEA (Japan Virtual Currency Exchange Association), a self-regulatory group comprising of various exchanges licensed by FSA in Japan along with many other pro-crypto organizations in Japan.
The FSA has further mentioned that it aims to undertake stricter monitoring of the crypto exchanges with a special focus on their cyber security infrastructure. The move comes after the horrifying Coincheck hacking scandal in 2018 and more recently the BITpoint hack in 2019. The agency wants to include JVCEA in its efforts to develop effective monitoring measures – something that reflects the trust it now places on JVCEA.
FSA and JVCEA collaborations will redefine Japan’s crypto regulations
The underlying aim of this new found collaboration is to jointly work and create a cryptocurrency ecosystem that boasts of latest technological infrastructure and remains updated with the hottest market trends. Subsequently, JVCEA has also given its consent to undertake cryptocurrency derivatives transactions certification reviews.
Recently, the agency has spoken openly on G20 platform to create a database of international cryptocurrency regulatory bodies so that appropriate communication amongst the numerous regulators can be achieved effectively.
The regulatory agency has further decided to conduct more cryptocurrency policy workshops in 2019. The earlier discussions were fruitful in bringing about two prominent changes. Firstly, the meet decided so forth cryptocurrencies will be legally called ‘crypto-assets’. Second change was related to framing various vital cryptocurrency regulations pertaining to the derivatives realm. Furthermore, the agency will collaborate with both local and global industry leaders besides renowned lawyers to draft effective policy.
On another note, Mitsubishi UFJ Financial Group (MUFG), a well-known blockchain conglomerate, will launch MUFG Wallet in September 2019. This wallet will permit users to spend ‘digital tokens’ in addition to conventional financial solutions. The card is expected to feature the upcoming blockchain powered stablecoin of the bank, i.e. MUFG Coin. The bank aims to commercialize this coin before December 2019.