Japan Financial Services Agency (FSA) is considering the regulation of the activities of unregistered firms that attract investment in cryptocurrency.
According to reports, this is an attempt to close a loophole in the existing regulatory framework of the country in which unregistered firms collect funds in cryptocurrencies rather than in paper currencies and remain unnoticed.
This situation exists due to the fact that these firms are not subject to the financial law of Japan, which prohibits unregistered companies from collecting investment funds in cash but does not mention the collection of funds in the form of cryptocurrency.
The review of the current status of such firms was last fall, when the police arrested eight people suspected of using the pyramid scheme.
According to the FSA, a review of existing regulations is aimed at preventing the recurrence of such cases.
Cryptocurrency hacks of Japan
As previously reported, Japan has a rich history with cryptocurrencies, where the most famous cryptocurrency hacks have occurred today - including Mt.Gox in 2014 and Coincheck in early 2018. Since the last time, the FSA has strengthened control over the security of crypto-exchanges and strengthened the process of checking risks when obtaining a compulsory official license for an operating stock-exchange.
New FSA rules
In addition to controlling the activities of unregistered crypto-investment companies, the Financial Institution of Japan is also going to introduce new cryptocurrency rules to protect investors from fraud. Start planning with the basic rules of security enhancement. Request from ICOICO
(Initial Coin Offerings) is an acronym, which means a primary currency offer. Details operators for registration, as well as the development of a new tokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details classification system, which will provide for the regulation of calculations.
Editor: Yuliya Soroka