Tuesday, February 7, 2023
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Japanese Officials Want Cryptocurrencies To Be Regulated Like Traditional Banks

Japan’s financial authorities have asked global regulators to regulate cryptocurrencies similarly to the banking industry, pushing for more regulations for the sector. According to Mamoru Yanase, deputy director-general of the Strategy Development and Management Bureau of the Financial Services Agency, crypto has to be regulated.

According to a January 17 Bloomberg publication, he said, “If you want to execute effective regulation, you must control and monitor the same way you do conventional institutions.” The statements from Japan’s financial watchdog follow the November collapse of FTX, which shook the sector and prompted urgent regulatory action.

Yanase, unlike some of his U.S. peers, has admitted that the issue was not crypto. “Cryptotechnology itself is not to blame for the newest incident,” he stated, adding that “weak governance, low internal controls, and the lack of regulation and oversight” were to blame. According to him, U.S. and European authorities have been encouraged to apply the same laws to cryptocurrency exchanges as they do to banks and brokerages.

The Financial Stability Board, a worldwide institution responsible for regulating the digital asset business, has approved the suggestions. Yanase noted that nations “must insist” crypto exchanges implement consumer protection procedures. In addition, there were requirements for the prevention of money laundering, good governance, internal controls, audits, and transparency for cryptocurrency brokerages.

Yanase made the remarks while stating that FTX’s Japanese business would restart withdrawals in February. “We have been in regular contact with FTX Japan,” Yanase added, stressing that the “client’s assets have been appropriately separated” from those of the subsidiary.

The U.S. court ruling over the FTX lawsuit approved the sale of many corporate subsidiaries, including FTX Japan. A week ago 41 parties were interested in purchasing the Japanese branch of the exchange. Monex CEO Oki Matsumoto said on January 16 that the firm was interested in acquiring FTX Japan and that it would be “extremely beneficial” for the financial services company if there was less competition on the local market.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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