Trading a cryptocurrency exchange in Japan is “pretty tough,” admits the head of the Financial Services Agency

The new commissioner of the Financial Services Agency (FSA) of Japan, Junichi Nakajima believes the country should think carefully before making Bitcoin (BTC) and other cryptocurrencies more accessible to the general public.

Nakajima believes that crypto-assets like Bitcoin have the potential to serve the public as a quick and inexpensive way to transfer money. he said in an interview with Bloomberg. But still, Most of the crypto assets are currently used for speculation and investment.

Hence, the Japanese regulator believes that careful consideration is required before making it easier for the public to invest in crypto assets. Nakajima said that The high volatility of the crypto markets due to the lack of underlyings is a main reason why the Japanese regulatory authority does not allow investment funds in cryptocurrencies.

Trading a cryptocurrency exchange in Japan is “pretty tough,” admits the head of the Financial Services Agency
Trading a cryptocurrency exchange in Japan is “pretty tough,” admits the head of the Financial Services Agency

Japan stepped up its regulatory efforts following the infamous hack of the Tokyo-based cryptocurrency exchange Coincheck. resulting in a loss of 523 million NEM with an approximate value of $ 534 million.

Since then, the country has become a difficult market for registered cryptocurrency exchanges, Nakajima admitted. The current regulatory framework for cryptocurrency exchanges effectively protects customers and meets the requirements for combating money laundering. but the business situation for most of the registered crypto exchanges is “quite tough”Nakajima added.

The Japanese government seeks one global cooperation to regulate digital currencies. To this end, the Japanese Treasury Department is reportedly trying to increase its staff. Also last month The FSA has created a new entity to oversee the crypto markets in general and focus on decentralized funding.

Some of the largest cryptocurrency exchanges like Binance and Bybit are not among the 31 cryptocurrency exchanges registered in Japan. The FSA issued a formal warning letter to Bybit in May and Binance in June accusing them of providing crypto exchange services in the country without being registered.

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