- Crypto regulations are getting more strict as the cryptocurrency industry is booming globally
- Japanese monetary regulator is seeking to introduce cryptocurrency regulations
- The regulator has established a new unit to oversee the regulations
- Other countries like South Africa who are facing several financial crimes related to crypto are also seeking to introduce such regulations
- Japan is looking to launch its own national digital currency and is concerned about stablecoins
Crypto regulations are soaring in the eyes of monetary regulators globally. Recently, the Japanese financial regulator, the Financial Services Agency (FSA), has been found devoted to bringing new and clear crypto regulations. Following the goals, the authority has recently entrenched a new unit to oversee the cryptocurrency regulatory framework. We have observed the latest measure of the regulator and the ministry came as the country seems to have its focus on the influence of private funds on the existing financial system.
Japan escalating to bring crypto regulations
A spokesperson from the agency talked with Reuters revealing the latest developments on cryptocurrencies. The steps by the authority came after observing the scenario on how the digital assets are soaring. According to an FSA spokesperson, the nation can no longer leave things unattended with global developments over cryptos moving so rapidly.
Additionally, it is observed that the country considers intensifying its diplomatic dialogues with other economic giants. Notably, the dialogues are regarding the regulations of the booming cryptocurrency industry.
Japanese authorities are concerned of stablecoins
Stablecoins are another type of digital asset with a fixed value. It is also noteworthy that the Japanese monetary authorities are concerned about such fiat-pegged crypto coins. Moreover, like several other central banks, the Bank of Japan is also working on exploring central bank digital currency (CBDC). To introduce its own national digital currency, the country has proposed regulations on the crypto industry. Hence, the upcoming regulations will only contribute to such a move
Latest regulatory unit
The latest unit of the Japanese Financial Services Agency was established earlier this month. The newly launched unit is expected to observe the DeFi platforms. DeFi is another booming sector in the cryptosphere, and the world sees it as the real incendiary of the traditional financial ecosystem.
Although the Japanese financial regulator confirmed the latest unit’s entrenchment, the division will remain devoted to their cryptocurrency. However, it did not describe its scope.
Other countries are looking to introduce crypto regulation
Besides Japan, other countries globally are also seeking to introduce cryptocurrency regulations. Indeed, several countries have escalated their efforts to do so. Among these countries, South Africa is the one that has seen a lot of high profiled financial scams related to virtual currencies. Hence, they believe crypto regulations are essential.