Asia is in many ways further ahead than other countries when it comes to the crypto market. This now goes so far that the Japanese crypto exchanges are subject to their own controls.
Independent controls should secure the crypto market
The authors of the new regulations in Japan are the industry association Virtual Currency Exchange. In addition, the Japanese stock exchange supervisory authority FSA dealt with the question of how the market for crypto currencies should deal with money in the future in order to avoid problems with money laundering. The agency is aware that digital currencies are developing rapidly and are a problem for the normal industry. Accordingly, it is important to create bureaucratic rules that also apply to brokers and crypto exchanges. Licences for stock exchanges have existed in Japan since the beginning of 2018 when it comes to trading crypto currencies such as Bitcoin or Dash.
Criticism from the rest of the world is realized
The new rules are the result of global criticism of Japan’s previous system as a result of several hacker attacks, which in turn led to extensive token theft. In the past, the FSA has repeatedly been made aware of its negligence in dealing with digital currencies because of their obvious shortcomings. In the future, customer deposits at stock exchanges in Japan are to be better protected. Stricter rules should guarantee that stock exchanges place more value on transparency and security.
Although the new requirements really fulfil their purpose, it has yet to be seen. After all, the foundation stone has been laid with the new set of rules. The fact that stock exchanges regulate themselves can – but need not – lead to the government’s goal. Ethereum and Co. remain difficult to regulate.