Japan Pushes New Regulation On National Exchanges
According to a report from Japan Times, the Japanese Financial Services Agency (FSA) has imposed new restrictions on cryptocurrency exchanges.
The changes involve check-ins from the federal agency on ensuring exchanges are screening sign-ups properly.
Japan has a population that has proven to be very enthusiastic about virtual currencies and Bitcoin (BTC). Regulations from its national agency show prudence that the country wants to take; and a step in a positive direction for Japanese exchanges.
Japanese FSA Regulates the Market
Japan seems to want to create a positive, flexible and clear regulatory framework for cryptocurrency exchanges. Throughout the year, the FSA has sought to create regulations that ensure safety in trading, but do not hamper the country’s exchanges.
Regulations started to take a serious turn after the Japanese exchange Coincheck was hacked earlier this year. The excahange lost $500 million dollars. Hackers were able to steal NEM coins that the exchange held on behalf of the users.
As part of the new changes, the FSA will conduct on-site examinations of the country’s exchanges. The screening application for exchanges also moves from 100 items to 400; showing an increase in security.
The FSA has also imposed regulations on trading outside of Japanese exchanges. One notable case of regulation hindering Japanese investment is in the upcoming LINE currency (LINK). Japanese investors will not be able to take part in purchasing LINK, at least not until regulations are lifted.
At the same time as Japan works out how its citizens will interact with cryptocurrencies, the United States, Europe and India are also facing similar challenges. Each nation’s regulatory agencies are assessing the balance of allowing startups in this space to thrive and protecting citizens.
So far, analysts see Japan’s FSA decision as helpful for consumers and not hindering the growth of Japan’s crypto market.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.