Japan’s Financial Services Agency (FSA) is considering introducing stricter rules on crypto assets to improve users ‘ security.
Crypto exchanges not careful enough: FSA
Japan’s financial watchdog is understood to be unconvinced by the virtues of the cryptocurrency. Agency, cbdc, Defi etc. it explores innovations in the industry, ensuring proper implementation without hindering development. However, despite strict rules for crypto trading, the FSA does not believe that crypto exchanges have taken adequate measures to prevent money laundering and price volatility.
FSA President’s perspective on cryptography
Although FSA Commissioner Junichi Nakajima is more sensitive to assets, the country still avoids remittances using cryptocurrencies. This is because the FSA’s regulation of this asset class allows only speculation and easy investment. However, due to the continuous expansion of the crypto sector, technologies such as Defi pose new challenges. Nakajima noted,
“We need to carefully consider whether it is necessary to make it easier for the general public to invest in crypto assets.”
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It is possible, however, that the FSA is willing to learn more about cryptography, as it has recently set up a research team of outside experts on the subjects. Crypto enthusiasts in the country hope that authorities will reconsider their approach to Defi regulations in the coming months. Fortunately, Nakajima understands that stricter rules have hurt many of the 31 registered exchanges, dragging them into financial warfare.
However, it clarified its strict stance against these digital assets because, unlike stocks, crypto systems do not have underlying assets and are therefore subject to sharp price fluctuations. Citing this as a reason, Nakajima discussed not allowing crypto investment partnerships, although this is an easy way for new investors to access the asset class.
