Japan Urges Regulators Worldwide to Subject Crypto Exchanges to Bank-Level Oversight – Regulation Bitcoin News

Bitcoin.com

Japan has reportedly urged other countries, including the U.S., to regulate crypto exchanges like they do banks. A top official at the Financial Services Agency explained that the recent FTX implosion wasn’t brought on by crypto technology but by “loose governance, lax internal controls, and the absence of regulation and supervision.”

Bank-Level Cryptocurrency Regulations

Japan’s Financial Services Agency (FSA), the country’s top financial regulator, has urged regulators globally to subject cryptocurrency exchanges to bank-level regulations, Bloomberg reported Monday. Mamoru Yanase, deputy director-general of the FSA’s Strategy Development and Management Bureau, was quoted as saying:

How To Get Free Crypto  

If you like to implement effective regulation, you have to do the same as you regulate and supervise traditional institutions.

The FSA has called for stronger crypto regulation following the collapse of crypto exchange FTX and subsequent fraud charges filed against its former CEO Sam Bankman-Fried (SBF). The FTX meltdown has dealt a severe blow to the cryptocurrency industry, highlighting gaps and differences in regulations worldwide.

Japan’s tough regulatory framework for crypto assets has provided a measure of protection for local investors, as they are expected to be able to withdraw their funds next month from two Japanese crypto exchanges linked to FTX.

Commenting on the failure of FTX, Yanase opined:

What’s brought about the latest scandal isn’t crypto technology itself … It is loose governance, lax internal controls and the absence of regulation and supervision.

According to Yanase, the FSA has “begun to urge” their counterparts in the U.S., Europe, and other regions to subject cryptocurrency exchanges to the same level of oversight traditional financial institutions, like banks and brokerages, are subject to.

Noting that countries may need to establish a multinational resolution mechanism to coordinate when large crypto firms fail, Yanase stressed the importance of achieving consistency in regulations worldwide.

Coinbase Banner  

The FSA official emphasized that countries “need to firmly demand” measures from crypto exchanges to ensure consumer protection, curb money laundering, and implement robust governance, internal controls, auditing, and disclosures. He added that regulators should also have the authority to take enforcement actions, such as onsite inspections, to ensure that crypto firms are adequately managing clients’ assets.

Tags in this story

What do you think about Japan urging other countries to regulate crypto exchanges like banks? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

FreeBitcoin Banner  

Read disclaimer

Go to Source
Author: Kevin Helms


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.