Japan's financial supervisory authority demands that crypto exchanges should be supervised like banks

Japan's financial supervisory authority demands that crypto exchanges should be supervised like banks

Mamoru Yanase-Deputy General Director of the Japanese Financial Service Authority (FSA)-asked the global supervisory authorities to impose stricter regulations on the cryptocurrency industry.

He believes that stock exchanges for digital assets should be treated as well as banks.

It is all because of ftx

according to According to Yanase, there is a way to prevent a further collapse of a cryptocurrency platform, in the fact that the supervisory authorities treat such companies as traditional financial institutions. The Japanese referred to the decline of FTX and said that the bankruptcy and the alleged fraud of Sam Bankman-Fried had destroyed the entire blockchain sector.

on the other hand he praised the approach of Japan's currency huts, which could enable local ftx user until mid-February to take off.

Yanase further argued that global regulatory authorities should protect consumers by enforcing stricter regulations to combat money laundering, using an improved governance in the crypto industry and carrying out internal audits and controls.

"What has led to the latest scandal is not crypto technology itself. It is a relaxed governance, lax internal controls and the lack of regulation and supervision," he said.

Mamoru Yanase, The Japan Times

The director of the FSA also said that the regulatory authorities should set up a multinational settlement mechanism that could be used if a further huge crypto exchange could be used. He believes that the nations and islands, which are considered blockchain hubs, should be the first to introduce this program.

Exchange that enter and leave Japan

The world's largest trading center for cryptocurrencies-Binance- Searched to have an approval in September 2022, in the "Land of the Sonate". His new interest (after leaving in 2018) is the result of the loosened crypto laws, the enforcement of which Prime Minister Fumio Kishida promised:

"The agenda of the Japanese Prime Minister Fumio Kishida to revive the economy under the" New Capitalism "heading includes the support of the growth of so-called web3 companies. The term "web3" refers to the vision of a decentralized internet that is built around blockchains, the underlying technology of crypto. "

binance has doubled its Japanese efforts in November acquire The Sakura exchange bitcoin (sebc). The latter acts as a cryptocurrency exchange and is registered with the FSA.

The company based in the USA, however, recently announced that he wanted to leave the Japanese market and referred to unstable economic conditions. The platform plans to register from the domestic financial supervisory authority by the end of this month, while the deposits of the users were stopped on January 9:

"The current market conditions in Japan in combination with a weak cryptoma market mean worldwide that the resources that are necessary for the further growth of our business in Japan are currently not justified.

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