Japan calls on the regulatory authorities worldwide to subdue crypto exchanges of an supervision at banking level-regulation
Japan calls on the regulatory authorities worldwide to subdue crypto exchanges of an supervision at banking level-regulation
reports that he would regulate crypto bonds such as banks. A high-ranking official from the Financial Services Agency said that the latest FTX implosion was not caused by crypto technology, but by "loose governance, lax internal controls and the lack of regulation and supervision".
regulations for cryptocurrencies at banking level
The Japanese Financial Services Agency (FSA), the state's highest financial supervisory authority, asked the supervisory authorities worldwide to submit the exchange of cryptocurrencies to the regulations at banking level, Bloomberg reported on Monday. Mamoru Yanase, deputy general director of the Strategy Development and Management Bureau of the FSA, was cited with the words:
If you want to implement effective regulation, you have to do the same as you regulate and monitor traditional institutions.
The FSA has required stronger crypto regulation after the collapse of the crypto exchange FTX and the subsequent fraud against its former CEO Sam Bankman-Fried (SBF). The FTX core melt has given the cryptocurrency industry a heavy blow and showed gaps and differences in the regulations worldwide.
Japan's strict regulatory framework for crypto-assets has offered local investors a certain level of protection, as expected from them Ped off your money from two Japanese crypto exchanges next month.
yanase commented on the failure of FTX as follows:
What caused the latest scandal is not crypto technology itself ... it is relaxed governance, lax internal controls and the lack of regulation and supervision.
According to Yanase, the FSA "started to urge its counterparts in the USA, Europe and other regions", to subject the exchange of cryptocurrencies to the same level of supervision, which is subject to traditional financial institutions such as banks and brokers
yanase found that countries may have to set up a multinational settlement mechanism in order to coordinate the failure of large crypto companies and emphasized how important it was to achieve uniform regulation worldwide.
The FSA official emphasized that the federal states have to "emphasize" measures of crypto exchanges to ensure consumer protection, contain money laundering and implement robust governance, internal controls, audits and disclosures. He added that the supervisory authorities should also have the authority to take enforcement measures such as inspections on site to ensure that crypto companies manage to adequately manage customers' assets.
What do you think that Japan is pushing other countries to regulate crypto exchanges like banks? Let us know in the comment area below.
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