Japan to bring cryptocurrency market under banking standards

Japanese financial regulator announced plans to bring the local cryptocurrency market under banking standards to combat money laundering
The Financial Services Agency (FSA) of Japan intends to include cryptocurrency market participants in its anti-money laundering platform. This is reported by Financial News, citing the head of the agency Junichi Nakajima.

Japan to bring cryptocurrency market under banking standards

According to him, crypto-service providers could fall under the same obligations as traditional financial institutions. Thus, crypto-exchanges and depositories will be prohibited from providing services to sanctioned persons.
It remains unknown, however, whether the inclusion of cryptocurrencies in the FSA platform means increased verification of users.

"Since we have the same list of international terrorists [as the U.S.], it would be more cost-effective and accurate if we created a common system rather than separate financial firms," he noted.

According to Nakajima, the agency intends to draw up a detailed plan to develop the platform by mid-2022. Nana Otsuki, chief analyst at Monex Group, said the innovation will have a "positive" effect on the digital asset market "in the long term."
In her view, tighter regulation of the crypto market will help overcome the preconception that cryptocurrencies are dangerous financial products. That way, regulators will be able to approve digital currencies as an investment vehicle even if their volatility persists, she added.

Earlier BeInCrypto editorial reported that Japanese Monex Group, which bought the hacked cryptocurrency exchange Coincheck, reported a record profit of the trading platform since the takeover. Thus, Coincheck brought Monex Group more than $80 million before taxes for the second quarter of 2021.
At the same time, revenue from bitcoin trading declined. The main profit came from altcoins, as the exchange expanded the list of supported tokens.
FX24

Author’s Posts