Tokyo, Aug. 24 (Jiji Press)–Japan’s Financial Services Agency has started debates about introducing stricter regulations on crypto assets in order to better protect users.
The government agency set up a section to oversee digital and decentralized finance as well as a panel of experts on the issue last month, amid progress in technological innovation including on cryptocurrencies and central bank digital currencies.
The agency plans to draw up as early as summer next year measures to ensure the stability of these new forms of finance in a way that does not hamper their development.
In 2019, the agency, through a law revision, strengthened regulations on cryptocurrency exchange operators, mandating them to manage users’ assets in a safer way following a massive theft of digital currency.
However, the agency believes that operators have not taken sufficient measures against money laundering and price volatility.
The Bank of Japan started an experiment on a central bank digital currency, although it says it has no plan to issue a CBDC at the moment. The BOJ and the government are paying attention to risks that global developments over digital currencies may pose to financial markets.