Japan's Financial Regulator Plans To Tighten Regulation of Cryptocurrencies

In July, the Japan Financial Services Agency (FSA) established a dedicated department as well as a group of financial experts to help the government oversee digital and decentralized finance. According to Jiji Press, the agency will also be responsible for tracking the development of cryptocurrencies and the central bank's digital currency initiatives.

The financial regulator intends to replace and introduce new rules for cryptocurrency by mid-2022. With the introduction of the new rules, the FSA hopes to ensure stability in the crypto market without compromising development and innovation in the ecosystem.

In 2019, the FSA revised a law that obliges crypto exchanges in Japan to implement new features to protect users' assets. This decision was due to the hacking of Bitpoint, a Japanese crypto exchange that lost $32 mln.

Image: Regulation Asia