Financial Services Agency Counselor “Virtual currency exchange business needs international rules similar to banks”

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International rules of virtual currency

Mamoru Yanase, a counselor at the Financial Services Agency’s Policy Bureau, said that there is a need for uniform international rules that impose the same level of strict regulations on crypto asset (virtual currency) exchanges as banks and securities companies. Bloomberg, which interviewed Mr. Yanase, reported on the 17th.

It is said that Japan’s thinking has already begun to be conveyed at forums such as the Financial Stability Board (FSB) and the Financial Action Task Force (FATF). In addition, following the FTX bankruptcy, he said that he would insist on this idea when he consults with global regulators.

What is FATF

An abbreviation of “Financial Action Task Force”, it is an international organization that oversees anti-money laundering (AML) and countering the financing of terrorism (CFT). Although the rules and recommendations it presents are not legally binding, they carry out examinations of member countries and publish a list of non-cooperating countries in AML and CFT, so they have a great influence.

▶Cryptocurrency Glossary

Relation: Severe shock in the virtual currency market, summary of Alameda shock and FTX turmoil

Mr. Yanase said that the following points are necessary for regulation of virtual currencies, and pointed out that on-site inspections and monitoring are also necessary. He said that Japan also intends to comply with international rules.

  • User protection
  • Anti-money laundering
  • Exchanger Governance (Corporate Governance)

In addition, the FSA explained that it does not intend to spread virtual currency as a means of asset building for individual investors. On the other hand, he said he has certain expectations for blockchain-based technology.

Regulatory development by the Financial Services Agency

The Financial Services Agency has long shown a willingness to cooperate with foreign countries on cryptocurrency regulations. In a speech given by Deputy Director-General for International Affairs Amaya last November, he said that Japan would actively contribute to policy discussions and international cooperation with other countries.

Relation: Financial Services Agency tightens regulations on algorithmic stablecoins

Even now, the Financial Services Agency is working to improve the Web3 environment and create regulatory rules. Last month, it was reported that the Financial Services Agency will lift the ban on domestic distribution of stablecoins issued overseas in 2023.

Relation: What is a stablecoin that even beginners can understand | Explain features and use cases

Regarding stablecoins issued overseas, it is proposed that the distributors handling the target issues in Japan, not the issuers, be required to protect the assets, and that the upper limit of remittances will be limited to 1 million yen per transaction.

In addition, for domestically issued stablecoins, the issuer is obliged to prepare collateral assets as collateral, and issuance is limited to banks, fund transfer companies, trust companies, etc.

Relation: FSA lifts ban on domestic distribution of overseas-issued stablecoins in anticipation of Web3

The post Financial Services Agency Counselor “Virtual currency exchange business needs international rules similar to banks” appeared first on Our Bitcoin News.

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