Japan’s financial regulators have urged global regulators to treat cryptocurrencies the same as banks: have called for stricter standards for the sector.
According to the deputy director general of the Office of Strategy Development and Management of the Financial Services Agency, Mamoru Yanase, it is necessary to control cryptocurrencies.
“If you want to apply effective regulation, you have to do the same thing that is done to regulate and supervise traditional institutions,” he said, according to a Bloomberg report on January 17.
Japan’s financial supervisor’s comments come after FTX’s collapse in Novemberwhich rocked the industry and prompted the urgency of regulatory action.
Unlike some of his American counterparts, Yanase has acknowledged that the problem was not with cryptocurrencies. “It’s not crypto itself that has caused the latest scandal,” he said, adding that “lax governance, lax internal controls, and a lack of regulation and oversight” are to blame.
Said Regulators in the US and Europe have been urged to apply the same rules to cryptocurrency exchanges that they apply to banks and brokers.
The recommendations have been promoted through the Financial Stability Board, a global organization tasked with regulating the digital asset industry.
Yanase added that countries “must strongly demand” consumer protection measures from cryptocurrency exchanges. Prevention of money laundering, strong governance, internal controls, audits, and information disclosure for crypto intermediaries were also required.
「当社 お 客 様 の 資産 の 管理 等 について (1月 16日 時 点」 お知らせ を 掲載 まし た。 こちら を ご 確認 ください。 。https: //t.co/y9d2rqasgb
—FTX Japan (@FTX_JP) January 16, 2023
The announcement “Customer asset management in our company (as of January 16)” has been published. Click here to see it.
Yanase made these comments while confirming that FTX’s Japanese subsidiary is expected to resume withdrawals from February.
“We have been in close communication with FTX’s Japanese subsidiary,” said Yanase, explaining that “client assets have been duly segregated” from the subsidiary.
The US court presiding over the FTX case agreed to the sale of FTX Japan, among other company subsidiaries. Last week, Cointelegraph reported that there were 41 parties interested in buying the Japanese arm of the exchange.
On January 16, Monex CEO Oki Matsumoto said they were interested in buying FTX Japan, adding that it would be “very good” for the financial services company if there was less competition in the local market.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.